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Rossdale Co. stock currently sells for $71.99 per share and has a beta of 1.18. The market risk premium is 7.50 percent and the risk-free
Rossdale Co. stock currently sells for $71.99 per share and has a beta of 1.18. The market risk premium is 7.50 percent and the risk-free rate is 3.06 percent annually. The company just paid a dividend of $4.13 per share, which it has pledged to increase at an annual rate of 3.85 percent indefinitely. What is your best estimate of the company's cost of equity? o 11.69% o 10.86% o 10.00% o o ) 9.58%
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