Ajax inc has common stock outstanding that has a market, Ask an Expert

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Ajax, Inc. has common stock outstanding that has a market price of $48 per share. Last year's dividend was $2.25 and is expected to grow at a rate of 4% per year, forever. The expected risk-free rate of interest is 2%, and the expected market premium is 5.5%. The company's beta is 1.2.

What is the cost of equity for Ajax using the dividend valuation model?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9870429

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