Question
Stock in CDB Industries has a beta of .99. The market risk premium is 7.4 percent, and T-bills are currently yielding 4.4 percent. CDBs most
Stock in CDB Industries has a beta of .99. The market risk premium is 7.4 percent, and T-bills are currently yielding 4.4 percent. CDBs most recent dividend was $2.80 per share, and dividends are expected to grow at an annual rate of 5.4 percent indefinitely. If the stock sells for $50 per share, what is your best estimate of the company's cost of equity?
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
