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Suppose stock in Alpha Air Freight has a beta of 1.2. The market risk premium is 8 percent, and the risk-free rate is 6 percent.
Suppose stock in Alpha Air Freight has a beta of 1.2. The market risk premium is 8 percent, and the risk-free rate is 6 percent. Alpha's last dividend was Rs. 2 per share, and the dividend is expected to grow at 8 percent indefinitely. The stock currently sells for Rs. 30. What is Alpha's cost of equity capital? Furnish complete working ..
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