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    Finance: Dybvig Corporation's common stock has a beta of 1.3; what is cost of equity?

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    The Dybvig Corporation's common stock has a beta of 1.3. If the risk-free rate is 4.5 percent and the expected return on the market is 12%, what is Dybgiv's cost of equity capital?

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    https://brainmass.com/business/finance/finance-dybvig-corporation-s-common-stock-has-a-beta-of-1-3-what-is-cost-of-equity-296796

    Solution Preview

    The cost of equity capital can be found out using the CAPM

    Cost ...

    Solution Summary

    The solution provides a brief, step by step and easy to follow response which calculates the cost of equity capital using a simple equation.

    $2.19

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