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Calculating cost of equity

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Calculating Cost of Equity

Stock of Dragula Industries has a beta of 1.1

Market risk premium is 7%

T-Bills are currently yielding 4.5%

Company's most recent dividend was $1.70 per share

Dividends are expected to grow at a 6% annually indefinitely

If stock sells for $39.00 per share, what is your best estimate of the company's cost of equity?

Reference no: EM131412284

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