Question: 1. Using 2 methods (dividend yield + growth rate and CAPM), calculate the cost of equity for 3M corp. The current dividend (D0) is $5.76

1. Using 2 methods (dividend yield + growth rate and CAPM), calculate the cost of equity for 3M corp. The current dividend (D0) is $5.76 and dividends are expected to grow by 6% per year. The stock is currently selling for $148.17. The beta is 1.01, risk free rate is 1% and the market risk premium is 7%.

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