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Solve Question 3 only Calculate the cost of capital (WACC) for Alamos Gold for 2021, using information provided below. - Government of Canada 10-year bond's
Solve Question 3 only
Calculate the cost of capital (WACC) for Alamos Gold for 2021, using information provided below. - Government of Canada 10-year bond's rate is 2% - TSX return =7.04% - Alamos Gold's beta =1.07 - Equity issuance costs amount to 3%. (14 marks) Q3 Using information above, calculate the price of Alamos Gold stock for 2020 using the constant growth dividend discount model, applying formula P0=Div1/(rg), where dividend growth rate is 1.3%. Based on your calculations, is the stock currently overvalued or undervalued? Calculate the cost of capital (WACC) for Alamos Gold for 2021, using information provided below. - Government of Canada 10-year bond's rate is 2% - TSX return =7.04% - Alamos Gold's beta =1.07 - Equity issuance costs amount to 3%. (14 marks) Q3 Using information above, calculate the price of Alamos Gold stock for 2020 using the constant growth dividend discount model, applying formula P0=Div1/(rg), where dividend growth rate is 1.3%. Based on your calculations, is the stock currently overvalued or undervaluedStep by Step Solution
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