Estimate of country roads cost of equity is find percent

Reference no: EM13290372

Stock in Country Road Industries has a beta of 0.7830. The market risk premium is 10.3 percent, and T-bills are currently yielding 4.6 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $31.2 per share, your best estimate of Country Road's cost of equity is FIND percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13290372

Questions Cloud

Effective in increasing the likelihood that a baby : The Genetics & IVF Institute conducted a clinical trial of the XSORT method designed to increase the probability of conceiving a boy. As of this writing, 291 babies were born to parents using XSORT method, and 239 of them were boys. Use a 0.01..

Find your average speed for the trip : You drive west at 74km/h for 25min , then follow a road that goes 41^\circ south of west, driving at 93km/h for another 36min. Find your average speed for the trip

Calculate the cost of equity using the sml method : Floyd Industries stock has a beta of 1.21. The company just paid a dividend of $0.70, and the dividends are expected to grow at 6 percent. The expected return of the market is 12 percent, and Treasury bills are yielding 5 percent.

Review of client business and perform audit risk analysis : Understanding planning stage of the audit process- review of client business and perform audit risk analysis

Estimate of country roads cost of equity is find percent : If the stock sells for $31.2 per share, your best estimate of Country Road's cost of equity is FIND percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Determine the initial acceleration of the mass : Two 1.7 kg masses are 1.7 m apart on a frictionless table. Each has +1.1 µC of charge. What is the initial acceleration of the mass if it is released and allowed to move

Comparing the variability of the power of a laser at current : An engineer was interested in comparing the variability of the power of a laser at current levels of 16 amps (X) and 20 amps (Y). To do so, random samples of 25 observations of power readings were obtained at each current level. The samples ..

Advantages-disadvantages of standardized test methods : What are the advantages and disadvantages of standardized test methods for materials ? " american society for testing and materials"

Explain how many moles of cl ions moles of alcl3 : How many moles of Cl ions, Cl1-, do you have in 3.0 moles of AlCl3. If you used 2.5 moles of C4H4 during an experiment, how many moles of O2 did you use? C4H4(g) + 5 O2(g) 4 CO2(g) + 2 H2O(g)

User Account

All Pages