Stock in CDB Industries has a beta of 90 The market risk premium is 7 percent, and T bills are currently yielding 3 5 percent CDB 's most recent dividend was $1 80 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely If the stock sells for $47 per share, what is you...

Calculate cost of equity using market line model app ...

Stock in CDB Industries has a beta of .90. The market risk premium is 7 percent, and

Question:

Stock in CDB Industries has a beta of .90. The market risk premium is 7 percent, and T-bills are currently yielding 3.5 percent. CDB's most recent was $1.80 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely. If the stock sells for $47 per share, what is your best estimate of CDB's cost of equity?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...