Question
CVS Health's beta from ValueLine is 0.9. The Treasury bond rate is 1% and the market risk premium is 8%. CVS expected dividend is $2.00
CVS Health's beta from ValueLine is 0.9. The Treasury bond rate is 1% and the market risk premium is 8%. CVS expected dividend is $2.00 per share with an expected constant growth rate of 6.5%, and CVS's recent stock price is $68 per share.
What is CVS Health's DCF cost of retained earnings estimate?
| A. | 9.4% | |
| B. | 9.6% | |
| C. | 8.2% | |
| D. | 7.3% |
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Fundamentals Of Investments
Authors: Charles J. Corrado
3rd Edition
0072829192, 978-0072829198
