Question: Incorrect Incorrect 0/0.5 pts Question 3 Suppose the stock in Lexis Corporation has a beta of .90. The market risk premium is 6 percent, and

Incorrect Incorrect 0/0.5 pts Question 3 Suppose the stock in Lexis

Incorrect Incorrect 0/0.5 pts Question 3 Suppose the stock in Lexis Corporation has a beta of .90. The market risk premium is 6 percent, and the risk-free rate is 4 percent. Based on the CAPM, what is the cost of equity? ___?___% 4.3 0 / 0.5 pts Question 4 Following the last question, suppose the company expects to issue a $1.26 dividend next year, and the dividend is expected to grow at 5 percent indefinitely. The company is trading at $28 today. Based on the dividend growth model, what is the cost of equity?__?__% 2.1

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