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Stock in Daenerys Industries has a beta of 1.05. The market risk premium is 7% and T-bills are currently yielding 3.4%. The company's most recent

Stock in Daenerys Industries has a beta of 1.05. The market risk premium is 7% and T-bills are currently yielding 3.4%. The company's most recent dividend was $2.35 per share, and dividends are expected to grow at an annual rate of 4.1% indefinitely. The stock currently sells for $43 per share.

a)Solve for the cost of equity capital using the CAPM.

b)Solve for the cost of equity capital using the dividend growth model.

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