Using the discounted cash flowdividend growth model what is


Answer the following questions regarding company RIM.

Consider the following information for company RIM:

Current market price per share $50.00

Most recent dividend paid per share $2.00

Expected dividend payout rate 50%

Return on equity 10%

Beta coefficient for common stock 1.00

Expected return on the market portfolio 9%

Return on government treasury bills 3%

Using the discounted cash flow/dividend growth model, what is the cost of equity capital for RIM?

Using the Capital Asset Pricing Model (CAPM) approach, what is the cost of equity capital for RIM?

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Financial Management: Using the discounted cash flowdividend growth model what is
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