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Author Question: The return on the market is 11%. A firm's beta is 1.4, and the risk-free rate is 6%. The stock is ... (Read 21 times)

wrbasek0

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on: Apr 25, 2021
The return on the market is 11%. A firm's beta is 1.4, and the risk-free rate is 6%. The stock is currently selling for $18 and the next dividend is expected to be $1.75. The firm's growth rate is 5%. The pre-tax cost of debt is 10% and the equity risk premium is 5%. Estimate the cost of equity by taking an average of the three methods to determine the cost of equity.
◦ 15.0%
◦ 14.2%
◦ 13.0%
◦ 14.7%
◦ 11.5%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by wrbasek0 on Apr 25, 2021

marict

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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wrbasek0

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Reply 2 on: Apr 25, 2021
Excellent

Kedrick2014

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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