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If the stock sells for 55 per share what is your best

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If the stock sells for $55 per share, what is your best estimate of CDB's cost of equity?

Stock in CDB Industries has a beta of 1.09. The market risk premium is 7.4 percent, and T-bills are currently yielding 4.4 percent. CDB's most recent dividend was $3.30 per share, and dividends are expected to grow at a 5.4 percent annual rate indefinitely.

Reference no: EM13479257

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