Stock in country road industries has a beta of 059 the, Ask an Expert

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Stock in Country Road Industries has a beta of 0.59. The market risk premium is 8.5 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 3.5 percent annual rate indefinitely. If the stock sells for $39 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

a.) 8.54%

b.) 9.28%

c.) 7.07%

d.) 8%

e.) 10.02%

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Financial Management, Finance

Category:- Financial Management
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