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TB MC Qu. 14-51 Stock in Country Road Industries has... Stock in Country Road Industries has a beta of 1.62. The market risk premium is

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TB MC Qu. 14-51 Stock in Country Road Industries has... Stock in Country Road Industries has a beta of 1.62. The market risk premium is 8.2 percent while T-bills are currently yielding 2.9 percent. Country Road's last paid annual dividend was $1.87 per share and dividends are expected to grow at an annual rate of 3.8 percent indefinitely. The stock sells for $25 a share. What is the estimated cost of equity using the average return of the CAPM and the dividend discount model

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