Suppose stock in USF Corp has a beta of .90. The market risk premium is...
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Finance
Suppose stock in USF Corp has a beta of .90. The market risk premium is 7% and the risk free rate is 8%. USFs last dividend was $1.80 per share, and the dividend is expected to grow at 7%. The stock currently sells for $25. a) Calculate USFs cost of equity using both model we discussed in class. b) Which cost of equity would you use and WHY?
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