Question: PLEASE DO NOT ANSWER SO QUESTION GETS REFUNDED posted the wrong question thank you Eaton Electronic Companys treasurer uses both the capital asset pricing model

PLEASE DO NOT ANSWER SO QUESTION GETS REFUNDED

posted the wrong question

thank you

Eaton Electronic Companys treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: Rf = 5 % Km = 8 % = 1.8 D1 = $ 0.55 P0 = $ 16 g = 5 %

a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

b. Compute Ke (required rate of return on common equity based on the dividend valuation model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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