What are the dimensions of the bcg matrix

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1. Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $45.00; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

2. What are the dimensions of the BCG matrix? What are the SBUs in each quadrant called and what does the model suggest about how SBUs in each quadrant should be treated?

3. A stock sells for $23.80 per share. Three months from now, the price will either be $25.20 or $22.20.  A call option to purchase 100 shares in three months for $24 sells for $72. With what risk-free annual effective rate of interest is this consistent (assuming no-arbitrage model)?

Reference no: EM131935604

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