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Problem 12-20 Calculating Cost of Equity [LO 1] Stock in Eduardo Industries has a beta of 1.09 . The market risk premium is 7.4 percent,
Problem 12-20 Calculating Cost of Equity [LO 1] Stock in Eduardo Industries has a beta of 1.09 . The market risk premium is 7.4 percent, and T-bills are currently yielding 4.4 percent. The most recent dividend was $3.30 per share, and dividends are expected to grow at an annual rate of 5,4 percent, indefinitely. If the stock sells for $55 per share, what is your best estimate of the company's cast of equity? Note: Do not round intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
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