Question: please solve with/using excel and show all of the formulas please. thank you The common stock for M&M Corporation currently sells for $38.85, and the
please solve with/using excel and show all of the formulas please. thank you

The common stock for M&M Corporation currently sells for $38.85, and the dividend paid last year was $2.55 and is expected to grow at an annual rate of 3.6% in the future. a. (Ignore the first part of this question in the text and answer only the following) What is the estimated cost of common equity to the firm using the dividend growth model? b. M&M's CFO has asked her financial analyst to estimate the firm's cost of common equity using the CAPM as a way of validating the earlier calculations. The risk-free rate of interest is currently 3.4 percent, the market risk premium is estimated to by 6.2 percent, and M&M's beta is 1.13. What is your estimate of the firm's cost of common equity using this method? Given Common Stock sells dividend paid expected growth annual rat 38.85 2.55 3.6
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