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Suppose that stock in Ski Gear Corp. has a beta of 90. The market risk premium is 7 percent, and the risk-free rate is 8

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Suppose that stock in Ski Gear Corp. has a beta of 90. The market risk premium is 7 percent, and the risk-free rate is 8 percent. Ski Gear's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent indefinitely. The stock currently sells for $30. What is Ski Gear's cost of equity capital using the DGM approach? a. 14.7% b. 13.42% c. 14.9% d. 12.196 e. 14.2%

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