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Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 31.0%, and
Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 31.0%, and the current dividend yield is 3.00%. Its beta is 1.22, the market risk premium is 9.00%, and the risk-free rate is 3.80%. Use the CAPM to estimate the firms cost of equity. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Now use the
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