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Suppose that the CEO of Initrode Software has asked you to estimate their current equity cost of capital. She asks you to use the average

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Suppose that the CEO of Initrode Software has asked you to estimate their current equity cost of capital. She asks you to use the average of the CAPM approach and the DDM approach and provides the following financial data. Stock Price $32 a share Equity Beta 1.15 Rm 10.1 percent Rp 5.5 percent Do $1.54 per share (Hint: you need D in the formula) E{g} 7 percent

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