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What is thajba cost of equity

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Reference no: EM132931234

Problem 1: What is Thajba cost of equity? Compute using both SML and DGM

Thajba & Friends Co. has a beta of 1.5. The market risk premium is expected to be 8%, and the 3 months T-Bills is 6%. The analyst has estimated that dividends will grow at 6% per year. Last year dividend was $2. Thajba's stock is currently selling for $15.65.

Reference no: EM132931234

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