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The Beta coefficient of Norco, inc. is 2.0. the 20-year Treasury yield is 3.5% and investors currently require 8% to invest in the market as

The Beta coefficient of Norco, inc. is 2.0. the 20-year Treasury yield is 3.5% and investors currently require 8% to invest in the market as risk premium. a.

What is the required return on Norco, Inc common stock?

b. Norco has a dividend yield of 10%. Use the Dividend Discount Model to estimate the expected growth rate of the dividend.

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