Use the information to answer the following questions. ABC Company has been growing at a 10%...

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Use the information to answer the following questions. ABC Company has been growing at a 10% rate, and it just paid a dividen

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Answer 1

Answer #1

As per CAPM,

$Required Return = R_{f}+\beta (R_{m}-R_{f})$

Rf = Risk free Return = 7%
Rm = Market return = 11%
Beta = 2

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Answer 2

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