aux Corp Stock Over the Last 10 years - Beta = 1.1 - Market Risk premium = 10% - Current risk-free rate 3% - Last dividend $5 - Current Stock Price $30 Dividend History 2016 - $4.20 2017 - $4.40 2018 - $4.55 2019 - $4.75 2020 - $5.00 Dividend Growth Rate = 17.83% 1. Calculate the Cost of Equity using DGM
aux Corp Stock Over the Last 10 years - Beta = 1.1 - Market Risk premium = 10% - Current risk-free rate 3% - Last dividend $5 - Current Stock Price $30 Dividend History 2016 - $4.20 2017 - $4.40 2018 - $4.55 2019 - $4.75 2020 - $5.00 Dividend Growth Rate = 17.83% 1. Calculate the Cost of Equity using DGM
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Faux Corp Stock Over the Last 10 years
- Beta = 1.1
- Market Risk premium = 10%
- Current risk-free rate 3%
- Last dividend $5
- Current Stock Price $30
Dividend History
2016 - $4.20
2017 - $4.40
2018 - $4.55
2019 - $4.75
2020 - $5.00
1. Calculate the
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