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Orlando Pixie Dust is considering an option to buy some land in Brazil 3 years into the future. The acquisitions department discounts future projects at 3%. Calculate the discount factor that will be applied to the future cash flow.

Your firm's beta is 0.7, comparable T-bond rates are 8, and the market risk premium is 3. Calculate the required return on your stock.

Swamp & Sand's current dividend is $1 per share. Analysts expect the firm's growth rate of 2% per year to continue indefinitely. The current stock price is 10.27 . Calculate the required return on equity for this firm.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92412276

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