If a firm has a beta of 90 and a market risk premium of 7


If a firm has a beta of 90% and a market risk premium of 7% and T-bills yield 3.5%. The most recent dividend was $1.80 per share and dividends are expected to grow at a 5% annual rate indefinitely. If the stock sells for 47% per share, what is your best estimate of the firm's cost of equity?

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Financial Management: If a firm has a beta of 90 and a market risk premium of 7
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