Stock in daenerys industries has a beta of 12 the market, Ask an Expert

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Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 9 percent, and T-bills are currently yielding 4.6 percent. The company’s most recent dividend was $1.80 per share, and dividends are expected to grow at an annual rate of 8 percent indefinitely.

If the stock sells for $36 per share, what is your best estimate of the company’s cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92406521

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