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ABC has a beta of 1

Finance

ABC has a beta of 1.06, a stock price of $17, and recently paid an annual dividend of $.92 per share. The dividend growth rate is 2.2 percent. The market has a rate of return of 11.2 percent and risk-free rate is 3.9%. What is the estimated cost of equity using the average return of the CAPM and the dividend discount model? HINT: It means you should estimate cost of equity based on two methods and then calculate the average of these two. 9.68 8.67 09.13 10.30

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