What is the required rate of return on hk common shares

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Reference no: EM132776120

Problem 1: What is the required rate of return on HK's common shares if internally generated funds will be sufficient to finance the equity portion of any new financing and:

a) the capital asset pricing model (CAPM) is used to determine the shares' required rate of return?

b) the constant-growth dividend discount model is used to determine the shares' required rate of return?

Reference no: EM132776120

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