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The beta of Company Stock is 1.25. The company just paid a dividend of $0.85 and the dividends are expected to grow at 5.7 percent
The beta of Company Stock is 1.25. The company just paid a dividend of $0.85 and the dividends are expected to grow at 5.7 percent per year. The expected return on the market is 9% and Treasure bills are yielding 3.7%. The most recent stock price for the company is $92. a. Calculate the cost of equity using DDM Model. b. Calculate the cost of equity using the SML method. Shows all the step and formula. Don't round off until you get the answer.
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