Stock in Coalhurst Industries has a beta of 0.95. The market risk premium is 7%, and T-bills
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Stock in Coalhurst Industries has a beta of 0.95. The market risk premium is 7%, and T-bills are currently yielding 3.6%. The company’s most recent dividend was $2.05 per share, and dividends are expected to grow at a 4.1% annual rate indefinitely. If the stock sells for $39 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: 9781259654756
10th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway
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