Question: The equity beta for Harley-Davidson (HOG) is 2.3 The yield on 10-year treasuries is 2.0%, and you estimate the market risk premium to be 4.5%.

The equity beta for Harley-Davidson (HOG) is 2.3 The yield on

The equity beta for Harley-Davidson (HOG) is 2.3 The yield on 10-year treasuries is 2.0%, and you estimate the market risk premium to be 4.5%. Further, HOG issues an annual dividend of $0.40. Its current stock price is $23.76, and you expect dividends to increase at a constant rate of 6.0% per year. 'Estimate HOG's cost of equity in two ways

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