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What is ski gear cost of equity capital

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Reference no: EM133111946

Suppose that stock in Ski Gear Corp. has a beta of .90. The market risk premium is 7 percent, and the risk-free rate is 8 percent. Ski Gear's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent indefinitely. The stock currently sells for $30. What is Ski Gear's cost of equity capital using the DGM approach?

Reference no: EM133111946

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