What is your best estimate of the companys cost of equity

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Reference no: EM131300738

Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 8 percent, and T-bills are currently yielding 4.5 percent. The company’s most recent dividend was $1.70 per share, and dividends are expected to grow at an annual rate of 7 percent indefinitely. If the stock sells for $34 per share, what is your best estimate of the company’s cost of equity?

Reference no: EM131300738

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What is your best estimate of the companys cost of equity : Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 8 percent, and T-bills are currently yielding 4.5 percent. The company’s most recent dividend was $1.70 per share, and dividends are expected to grow at an annual rate of 7 pe..

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