What is your best estimate of the company cost of equity

Assignment Help Financial Management

Reference no: EM131619748

Stock in CDB Industries has a beta of 1.12. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDB’s most recent dividend was $3.60 per share, and dividends are expected to grow at an annual rate of 5.2 percent indefinitely.

If the stock sells for $58 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131619748

Questions Cloud

What is the nominal dollar amount of your last withdrawal : What is the nominal dollar amount of your last withdrawal?

What is clean price of the bond : You purchase a bond with an invoice price of $1,042. What is the clean price of the bond?

Identify the affected parties in any scheme : Identify the affected parties in any scheme to manage profits to prop up stock price. Examine the implications of each

How will you work with your chair to help address : What challenges have you encountered while working on your proposal this week? What questions remain?

What is your best estimate of the company cost of equity : If the stock sells for $58 per share, what is your best estimate of the company's cost of equity?

Simulate the operation of the system for one complete day : People arrive at a microscope exhibit at a rate of one every 8 ± 2 minutes. Only one person can see the exhibit at a time.

Identify current initiative the agency considers a priority : Identify at least one current initiative the agency considers a priority. Describe the impact this agency has on health care policy and delivery.

Curing a variety of genetic diseases : Gene therapy is a major area of research for curing a variety of genetic diseases. Briefly describe the process of gene therapy.

Explain the globe are currently tectonically active : The African Rift Valley is currently an active tectonic region. What is happening in this region and what other regions of the globe are currently tectonically

User Account

All Pages