Question
Floyd Industries stock has a beta of 1.30. The company just paid a dividend of $.30 and the dividends are expected to grow at 4
Floyd Industries stock has a beta of 1.30. The company just paid a dividend of $.30 and the dividends are expected to grow at 4 percent per year. The expected return on the market is 13 percent, and Treasury bills are yielding 6.3 percent. The most recent stock price for the company is $80.
Calculate the cost of equity using the SML method.
How is the BETA found here?
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The Handbook Of Mergers And Acquisitions
Authors: David Faulkner, Satu Teerikangas, Richard J. Joseph
1st Edition
0199601461, 978-0199601462
