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Suppose stock in Alpha has a beta of 1 . 2 . The market premium is 7 % , and the risk - free rate

Suppose stock in Alpha has a beta of

1.2 .

The market

premium is

7 %,

and the risk

-

free rate is

6 % .

Alpha

s last

dividend was Rs

. 2

per share, and the dividend is expected to

grow at

8 %

indefinitely. The stock currently sells for Rs

. 30 .

What is Alpha

s COE?

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