Dividend discount model-what is verizon cost of equity

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Reference no: EM132010847

Verizon Wireless

Beta estimate of 0.52

Last dividend = $2.31 per share

Current price = $52.11 per share

Dividend growth rate = 3% annually

Using CAPM, what is Verizon’s cost of equity (rf = 2%, MRP = 7%)?

Using the dividend discount model, what is Verizon’s cost of equity?

Reference no: EM132010847

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