What equation was used to get this?
Common Stock
Share price 65
Dividends 2.53
Growth rate 9%
Riskfree Rate 7%
Market Risk Premium 5.50%
Beta 1.2
Cost of common stock(using DGM) 13.24%
Cost of common stock(using
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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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