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 6 percent, and T-bills are currently yielding 5.3 percent. The company’s most recent dividend was $1.70 per share, and dividends are expected to grow at an annual rate of 5 percent indefinitely.

If the stock sells for $35 per share, what is your best estimate of the company’s cost of equity? (Hint: As you have two approaches, calculate each and take the average as your "best estimate".)

Cost of Equity? ____%

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Financial Management, Finance

Category:- Financial Management
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