The alpha corporation has a beta of 68 the market risk, Ask an Expert

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The Alpha Corporation has a beta of .68. The market risk premium is 4.5% and the risk-free rate (U.S. T-bills) is 3.25%. The company's upcoming dividend is expected to be $1.18 per share, and dividends are expected to grow at a 3.35% annual rate indefinitely. If the stock sells for $19 per share, what is your best estimate of the company's cost of equity?

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Financial Management, Finance

Category:- Financial Management
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