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Anle corporation has a current stock price of

01/05/2021 Client: muhammad11 Deadline: 2 Day

Anle Corporation
has a current stock price of $20 and is expected to pay a dividend of $1 in one year. Its expected stock price right after paying that dividend is $22.
a. What is Anle’s equity cost of capital?
b.

How much of Anle’s equity cost of capital
is expected to be satisfied by dividend yield and how much by capital gain?

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