Determine best estimate of the company cost of equity


Stock in Country Road Industries has a beta .85. The market risk premium is 8%, and t-bills are currently yielding 5%. The company's most recent dividend was $1.60 per share, and dividends are expected to grow at 6% annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity?

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Finance Basics: Determine best estimate of the company cost of equity
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