What is your best estimate of the company cost of equity

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Stock in Country Road Industries has a beta of 1.07. The market risk premium is 8 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely. If the stock sells for $34 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.) rev: 09_20_2012 11.56% 9.62% 8.28% 12.56% 10.56%

Reference no: EM131177982

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