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Equity in Landsvg AG has a beta of 0.85. The market risk premium is 8%, and T-bills are currently yielding 5%. The companys most recent
Equity in Landsvg AG has a beta of 0.85. The market risk premium is 8%, and T-bills are currently yielding 5%. The companys most recent dividend was SKr1.60 per share, and dividends are expected to grow at a 6% annual rate indefinitely. If the equity sells for SKr37 per share, what is your best estimate of the companys cost of equity?
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