Question: Stock in ABC Industries has a beta of 85 The
Stock in ABC Industries has a beta of .85. The market risk premium is 8 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.60 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely. If the stock sells for $37 per share, your best estimate of ABC cost of equity is? percent.
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