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McCliffs has the following parameters related to its stock and firm. Beta Recent Dividend 1.1 1.05 dollars Dividend Growth Rate 4.5 percent Expected return on market 11.0 percent Treasury Bills Yield 4.3 percent Most recent stock price 64.00 dollars What is the cost of equity using DDM? What is the cost of equity using SML? a. 6.21 percent b. 11.67 percent c. 6.01 percent d. 7.37 percent e. 4.5 percent f. 11.00 percent

McCliffs has the following parameters related to its stock and firm. Beta Recent Dividend 1.1 1.05 dollars Dividend Growth Rate 4.5 percent Expected return on market 11.0 percent Treasury Bills Yield 4.3 percent Most recent stock price 64.00 dollars What is the cost of equity using DDM? What is the cost of equity using SML? a. 6.21 percent b. 11.67 percent c. 6.01 percent d. 7.37 percent e. 4.5 percent f. 11.00 percent

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4AP
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McCliffs has the following parameters related to its stock and firm. Beta Recent Dividend 1.1 1.05 dollars Dividend Growth Rate 4.5 percent Expected return on market 11.0 percent Treasury Bills Yield 4.3 percent Most recent stock price 64.00 dollars What is the cost of equity using DDM? What is the cost of equity using SML? a. 6.21 percent b. 11.67 percent c. 6.01 percent d. 7.37 percent e. 4.5 percent f. 11.00 percent
Transcribed Image Text:McCliffs has the following parameters related to its stock and firm. Beta Recent Dividend 1.1 1.05 dollars Dividend Growth Rate 4.5 percent Expected return on market 11.0 percent Treasury Bills Yield 4.3 percent Most recent stock price 64.00 dollars What is the cost of equity using DDM? What is the cost of equity using SML? a. 6.21 percent b. 11.67 percent c. 6.01 percent d. 7.37 percent e. 4.5 percent f. 11.00 percent
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