Cost of equity using the bond yield plus premium approach

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The return on the market is 11.8 %. A? firm's beta is1.4and the? risk-free rate is 5.3 %. The stock is currently selling for $ 19.52 and the next dividend is expected to be $ 2.06. The? firm's growth rate is 3.8 %. The cost of debt is 10 %. Assume the equity risk premium is 4.4 %. Estimate the cost of equity using the bond yield plus a premium approach.The cost of equity is what percent? ?(Round to one decimal? place.)

Reference no: EM131898786

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