Determine the cost of equity

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Question - Alexas Corporation reports the following:

2005

Earnings per share $1.44

Dividends per share $0.62

Book Value/share at YE $7.70

If price-to-book ratio at the end of 2005 equals 1.00, and return on beginning of year equity is expected to remain constant, then determine the cost of equity?

Reference no: EM133076336

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