A firm has a return on equity of 124 percent according to


A firm has a return on equity of 12.4 percent according to the dividend growth model and a return of 18.7 percent according to the capital asset pricing model. The market rate of return is 13.5 percent. What rate should the firm use as the cost of equity when computing the firm's weighted average cost of capital (WACC)?

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Financial Management: A firm has a return on equity of 124 percent according to
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