Stock in cdb industries has a beta of 112 the market risk, Ask an Expert

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Stock in CDB Industries has a beta of 1.12. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDB’s most recent dividend was $3.60 per share, and dividends are expected to grow at an annual rate of 5.2 percent indefinitely.

If the stock sells for $58 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92428458

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