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Rossdale Co. stock currently sells for $71.11 per share and has a beta of 1.14. The market risk premium is 7.90 percent and the risk-free
Rossdale Co. stock currently sells for $71.11 per share and has a beta of 1.14. The market risk premium is 7.90 percent and the risk-free rate is 3.33 percent annually. The company just paid a dividend of $3.97 per share, which it has pledged to increase at an annual rate of 3.75 percent indefinitely. What is your best estimate of the company's cost of equity? Multiple Choice 8.54% 10.16% 11.78% 10.94% 9.74%
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