Stock in Country Road Industries has a beta of 1.09. The market risk premium is 7.5...
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Stock in Country Road Industries has a beta of 1.09. The market risk premium is 7.5 percent, and T-bills are currently yielding 3.5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $31 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.) Stock in Country Road Industries has a beta of 1.09. The market risk premium is 7.5 percent, and T-bills are currently yielding 3.5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $31 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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