In applying the capm to estimate the cost of equity capital


Teder Corporation stock currently sells for $95 per share. The market requires a 10 percent return on the firm's stock. Required : If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

In applying the CAPM to estimate the cost of equity capital, which of the following elements is not subject to dispute?

a) the market risk premium

b) the stock's beta coefficient

c) the risk-free rate

d) all of the above are subject to dispute

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Financial Management: In applying the capm to estimate the cost of equity capital
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