Stock in star city superconductors has a beta of 42 the, Ask an Expert

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Stock in Star City Superconductors has a beta of .42. The market return is 12.25% and the risk-free rate (Canadian T-bills) is 3.75%. The company's most recent dividend was $.589 per share, and dividends are expected to grow at a 3.5% annual rate indefinitely. If the stock sells for $61 per share what is your estimate of the company's cost of equity?

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Category:- Financial Management
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