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Steady Company's stock has a beta of 0.16. If the risk-free rate is 5.9% and the market risk premium is 6.8%, what is an estimate
Steady Company's stock has a beta of 0.16. If the risk-free rate is 5.9% and the market risk premium is 6.8%, what is an estimate of Steady Company's cost of equity? Steady's cost of equity capital is %. (Round to one decimal place.) Mackenzie Company has a price of $38 and will issue a dividend of $2.00 next year. It has a beta of 1.3, the risk-free rate is 5.3%, and the market risk premium is estimated to be 4.9%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)
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