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The CEO of Harding Media Inc. as asked you to help estimate its cost of common equity. You have the following data D_0 = P_0

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The CEO of Harding Media Inc. as asked you to help estimate its cost of common equity. You have the following data D_0 = P_0 = $22.00, and The CEO however that the stock price is temporarily depressed, and that it will soon rise to $40.00. Based on the dividend growth model, by how would de if the stock price changes as the CEO expects? Assume that the risk rate is 6% and the market risk premium is 5%. Given this information which of following statements is CORRECT? a. If a stock has a negative beta, its required return must also be negative. b An index fund with beta = 1.0 should have a required return of 11%. c An index fund with beta = 1.0 should have a required return less than 11%. d. An index fund with beta = 1.0 should have a required return greater than 11%. e. If a stock's beta doubles, its required return must also double

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