Calculating Cost of Equity Equity in Landsvg AG has a beta of 0.85. The market risk premium
Question:
Calculating Cost of Equity Equity in Landsväg AG has a beta of 0.85. The market risk premium is 8 per cent, and T-bills are currently yielding 5 per cent. The company’s most recent dividend was SKr1.60 per share, and dividends are expected to grow at a 6 per cent annual rate indefinitely. If the equity sells for SKr37 per share, what is your best estimate of the company’s cost of equity?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
Question Posted: