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What is firm-s cost of equity capital

Suppose stock in Watta Corporation has a beta of .80. The market risk premium is 6 percent, and the risk-free rate is 6 percent. Watta's last dividend was $1.20 per share, and the dividend is expected to grow at 8 percent indefinitely. The stock currently sells for $45 per share. What is Watta's cost of equity capital?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is firm-s cost of equity capital

Reference No:- TGS0553080

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is firm-s cost of equity capital

Reference No:- TGS0553080

Recent Questions Asked Finance Basics

Q : After-tax cost of debt on the bond

Q : The manufacturing overhead budget at foshay corporation

Q : Determine the product cost concept

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