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Common shares of App Invent Inc. have a beta of 0.9. The market risk premium is 8 percent, and T-bills are currently yielding 1 percent. The company's most recent dividend was $1.50 per share, and dividends are expected to grow at a 3 percent annual rate indefinitely. If the stock sells for $30 per share, what is your best estimate of the company's cost of equity? (Use both methods of estimation and average your results)

Please show your work including formulas as best as possible,

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92302024

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