g information is for Cougar Corp. an appliance manufacturer. Given this information determine Cougar's implied discount rate. Market Value of equity $26,452 Book value of equity $10,835 ROE 15.2% EPS growth 8.8% Market's expectation of discount rate 9.0% Market's expected growth rate 6.0% a 13.3% b. 3.0% c. 15.2% d. 12.6%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The following information is for Cougar Corp. an appliance manufacturer. Given this information determine Cougar's implied discount rate.

Market Value of equity           $26,452

Book value of equity              $10,835

ROE                                          15.2%

EPS growth                               8.8%

Market's expectation of discount rate 9.0%

Market's expected growth rate         6.0%

a 13.3%

b. 3.0%

c. 15.2%

d. 12.6%

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