Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 8 percent, and T-bills are currently yielding 4.6 percent. The company's most recent dividend was $1.60 per share, and...


Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 8 percent, and<br>T-bills are currently yielding 4.6 percent. The company's most recent dividend was $1.60<br>per share, and dividends are expected to grow at an annual rate of 7 percent indefinitely.<br>If the stock sells for $32 per share, what is your best estimate of the company's cost of<br>equity? (Do not round Intermedlate calculations and enter your answer as a percent<br>rounded to 2 decimal places, e.g., 32.16.)<br>Cost of equity<br>

Extracted text: Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 8 percent, and T-bills are currently yielding 4.6 percent. The company's most recent dividend was $1.60 per share, and dividends are expected to grow at an annual rate of 7 percent indefinitely. If the stock sells for $32 per share, what is your best estimate of the company's cost of equity? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity

Jun 06, 2022
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