Stock in initrode software has a beta of 078 the market, Ask an Expert

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Stock in Initrode Software has a beta of 0.78. The market risk premium is 9.9 percent while T-bills are currently yielding 5.5 percent. Initrode's most recent dividend was $1.6 per share, and dividends are expected to grow at a 7 percent annual rate indefinitely. The stock sells for $33 a share. What is the estimated cost of equity using the average of the CAPM approach and the dividend discount approach?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91559441

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