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Stock in Country Road Industries has a beta of 0.88 . The market risk premium is 8 percent, and T-bills are currently yielding 4 percent.
Stock in Country Road Industries has a beta of 0.88 . The market risk premium is 8 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely. If he stock sells for $44 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
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