Question
7) Stock in Daenerys Industries has a beta of 1.07. The market risk premium is 9 percent, and T-bills are currently yielding 5.5 percent. The
7) Stock in Daenerys Industries has a beta of 1.07. The market risk premium is 9 percent, and T-bills are currently yielding 5.5 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 7.5 percent annual rate indefinitely. If the stock sells for $31 per share, what is your best estimate of the company's cost of equity?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
