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Question: Benton Industries stock has a beta of 1.2. The company just paid a dividend of $.50, and the dividends are expected to grow at 6 percent per year. The expected return on the market is 11 percent, and Treasury bills are yielding 4.6 percent. The current price of the company's stock is $63.
a. Calculate the cost of equity using the DDM method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. Calculate the cost of equity using the SML method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Carolina Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable
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A company expects to pay a dividend of $3.50 per share next year. If the required return is 8% and the growth rate of dividends is 5%, what is the intrinsic val
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Prepare the balance-sheet for Varun Inc. based on the following information: At the end of year 2012, the company had cash balance worth $ 210,000, accounts payable of $522,000, current liability of $714,000, current assets of $984,000.
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