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Danni Sports LLC stock has a beta of 1.15. The company just paid a dividend of $.75 and the dividends are expected to grow at
Danni Sports LLC stock has a beta of 1.15. The company just paid a dividend of $.75 and the dividends are expected to grow at 4.5% per year. The expected return on the market is 11% and Treasury bills are yielding 3.7 percent. The most recent stock price for the company is $84. Calculate the cost of equity using the Dividend Discount Model method
.0543 or 5.43%.
.0453 or 4.53%.
.0640 or 6.40%.
.0843 or 8.43%.
None of the above
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