Stock in Country Road Industries has a beta of .85. The market risk premium is 8 percent,
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Stock in Country Road 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 indefi nitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity?
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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