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Cost of Capital

15. Cost of Capital. Questions and Problems. 1. With the information given, we can find the cost of equity using the dividend growth model. Using this model, the cost of equity is: RE = [420(1.06)/ 6500] + .06 = .1285 or 12.85% (See Eq. 15.1). 2. Calculating Cost of Equity

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50 percent common stock - PowerPoint PPT Presentation

Cost of Capital