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Suppose you must estimate the cost of equity for a firm, and you have the following data: r RF = 5.0%; r M r RF
Suppose you must estimate the cost of equity for a firm, and you have the following data: rRF = 5.0%; rM rRF = 4%; b = 0.9; D1 = $2.00; P0 = $50.00; g = 5%; and rd = the firm's bond yield = 5.8%. What is this firm's cost of equity using the DCF approach?
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