We found the Beta of AB 217 Corp = 0.85
SO
CAPM = Rf + Beta(RM - Rf) r = Question 1

This will be the "r" value that is used in the CGM.

Estimate the value of "g" ... the constant growth rate ..

Calculate the Dividend Growth Rate of AB 217 for Constant Growth Model (CGM)
We use actuall AB 217 history

PV ($1.20) Dividend paid 6 years ago. Negative so Excel can do the math
FV $1.55 Dividend paid this year = Do)
n 6
PMT 0
Rate This will be the Dividend Growth Rate ... = g Question 2

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