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Follow up-calculating the cost of equity

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Follow Up -Calculating the Cost of Equity.

Suppose stock in Bron Bron Corporation has a beta of .90. The market risk premium is 7 percent, and the risk-free rate is 8 percent. Boone's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent indefinitely. The stock currently sells for $25. What is Boone's cost of equity capital under the Dividend Growth Model, under the CAPM?

Reference no: EM132015787

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