Question
Will give u a like/ thumbs up for sure! Thank you so much! Friendly request and reminder:- pls answer all parts as I don't want
Will give u a like/ thumbs up for sure! Thank you so much!
Friendly request and reminder:- pls answer all parts as I don't want to waste the uploaded question. If u can't or don't want to answer all parts - pls don't answer {which further results in a dislike and bad comment :( }
Question -
S)
1. A company's stock has a beta of 0.7. The stock currently sells for $150 per share. The company just paid a dividend of $4 per share and future dividends are expected to grow at 5% per year. If the expected return on the market is 9.25%, what is the cost of equity capital for this company?
R)
2. A company has 3,200,000 shares outstanding that sell for $15.25 per share. The company's stock has a beta of 1.6. Assume the market risk premium is 9.25%, the risk-free rate is 1.75%, and the corporate tax rate is 20%. What is this companys market value of equity?
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