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

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