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The following information is available for two different common stocks: company A and Company B. Company A Company B Free cash flow per share at

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The following information is available for two different common stocks: company A and Company B. Company A Company B Free cash flow per share at the end $1.00 $5.00 of year 1 ut of 8% 4% Growth rate in cash flow per share Beta 1.3 .10 Risk-free return 7% 7% Expected market return 13.5% 13.5% Estimate the cost of equity for Company B

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