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vdj2011
Dec 6, 2011, 12:10 PM
Using Divident discount model, what is the cost of common equity using this information:
Current market price per share $32
Most recent divident per share paid on common stock 2.40
Expected divinent payout rate 40%
Expected return on equity ROE 15%
BETA 1.5
Return on market portfolio 15%
Risk free rate of return 4$