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Business, 31.05.2020 01:59 Zgt

2. Boilermaker Corp has a beta of 0.8. The market return is expected to be 15%, and the current risk-free rate is 4%. We have used analysts’ estimates to determine that the market believes our dividends will grow at 5% per year and our last dividend was $1. The stock is currently selling for $12.00. What is the company’s cost of equity using the Security Market Line and using the Dividend Growth Model?

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2. Boilermaker Corp has a beta of 0.8. The market return is expected to be 15%, and the current risk...
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