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Phillip Enterprises Inc.needs to determine its cost of equity capital.Use the following information to estimate the firm's cost of equity using both the security market line and the dividend growth model.The current market price of stock is $22.89,the risk-free rate is 4.00%,the required return on the market portfolio is 13.50%,the firm has a constant growth rate in dividends of 3.00% per year,current dividends are $2.00,and the firm's beta is 0.90.
Developing Nations
Countries with lower levels of industrialization, lower standards of living, and lower Human Development Index (HDI) ratings compared to more industrialized nations.
Capital Flight
The rapid movement of large sums of money or capital out of a country, typically to avoid economic instability or unfavorable conditions.
Corruption
The abuse of entrusted power for personal gain, often undermining democracy, ethical values, and justice.
Labor Productivity
A measure of the economic output generated per unit of labor input, such as per hour worked.
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