Stock in CDB Industries has a beta of 1.13. The market risk premium is 7.3 perce

Question

Stock in CDB Industries has a beta of 1.13. The market risk premium is 7.3 percent, and T-bills are currently yielding 4.3 percent. CDBs most recent dividend was $3.70 per share, and dividends are expected to grow at a 5.3 percent annual rate indefinitely.

If the stock sells for $59 per share, what is your best estimate of CDBs cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is Cost of equity ?? %

If the stock sells for $59 per share, what is your best estimate of CDBs cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is Cost of equity ?? %

Explanation / Answer

Stock in CDB Industries has a beta of 1.13. The market risk premium is 7.3 perce

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