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XXX=10% Format A & B Old Country Lemonade has a beta of 9, a stock price of $28, and recently paid an annual dividend of
XXX=10%
Format A \& B Old Country Lemonade has a beta of 9, a stock price of $28, and recently paid an annual dividend of $1.10 a share. The dividend growth rate is 3 percent. The market has an xx rate of return and a risk premium of 7 percent. What is the average expected cost of equity for Oid Country Lemonade (Hint: Calculate Re by two different modeis and average the two results] Step by Step Solution
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