Firms required return using both CAPM-constant growth model

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A firm's upcoming dividend is expected to be 2.25 and its stock is selling at $65. The firm has a beta of .8 and is expected to grow at 10% in the foreseeable future. Compute the firms required return using both CAPM and the constant growth model. Assume the market portfolio will earn 10% and the risk free rate is 3%.

Reference no: EM13951596

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