Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Question:5.9
McCliffs has the following parameters related to its stock and firm.
Beta
Recent Dividend
1.1
1.05 dollars
Dividend Growth Rate
4.5 percent
Expected return on market
11.0 percent
Treasury Bills Yield
4.3 percent
64.00 dollars
Most recent stock price
What is the cost of equity using DDM? What is the cost of equity using SML?
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Transcribed Image Text:Question:5.9 McCliffs has the following parameters related to its stock and firm. Beta Recent Dividend 1.1 1.05 dollars Dividend Growth Rate 4.5 percent Expected return on market 11.0 percent Treasury Bills Yield 4.3 percent 64.00 dollars Most recent stock price What is the cost of equity using DDM? What is the cost of equity using SML?
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