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

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Stock in Dragula Industries has a beta of 1.2. The market risk premium is 8 percent, and T-bills are currently yielding 4.60 percent. The company’s most recent dividend was $1.60 per share, and dividends are expected to grow at a 7.0 percent annual rate indefinitely. If the stock sells for $32 per share, what is your best estimate of the company’s cost of equity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity %

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Financial Management, Finance

Category:- Financial Management
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