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Stock in Daenerys Industries has a beta of 0.9. The market risk premium is 8.5 percent, and T-bills are currently yielding 3.5 percent. The
Stock in Daenerys Industries has a beta of 0.9. The market risk premium is 8.5 percent, and T-bills are currently yielding 3.5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $38 per share, what is your best estimate of the company's cost of equity?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
9th edition
78034698, 978-0077502287, 77502280, 978-0078034695
