Question: Hello! Can someone please help. Im not sure what formula to use to get this to calulate under the capital under the Dividend Growth Model,

Hello!

Can someone please help. Im not sure what formula to use to get this to calulate under the capital under the Dividend Growth Model, under the CAPM. Help!

Follow Up -Calculating the Cost of Equity.

Suppose stock in Bron Bron Corporation has a beta of .90. The market risk premium is 7 percent, and the risk-free rate is 8 percent. Boone's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent indefinitely. The stock currently sells for $25. What is Boone's cost of equity capital under the Dividend Growth Model, under the CAPM?

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