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11. The Alpha Corporation has a beta of .68. The market risk premium is 4.5% and the risk-free rate (U.S. T-bills) is 3.25%. The company's
| 11. The Alpha Corporation has a beta of .68. The market risk premium is 4.5% and the risk-free rate (U.S. T-bills) is 3.25%. The company's upcoming dividend is expected to be $1.18 per share, and dividends are expected to grow at a 3.35% annual rate indefinitely. If the stock sells for $19 per share, what is your best estimate of the company's cost of equity? |
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
