Rossdale Co. stock currently sells for $72.21 per share and has a beta of 1.19. The market
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- Rossdale Co. stock currently sells for $72.21 per share and has a beta of 1.19. The market risk premium is 7.40 percent and the risk-free rate is 3.02 percent annually. The company just paid a dividend of $4.17 per share, which it has pledged to increase at an annual rate of 3.75 percent indefinitely. What is your best estimate of the company's cost of equity? You must show all your work (Financial calculator) to earn credits.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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