If the stock sells for 45 per share what is your best


Calculating Cost of Equity. Stock in CDB Industries has a beta of 1.10. The market risk premium is 7.8 percent, and T-bills are currently yielding 3.5 percent. CDB’s most recent dividend was $2.35 per share, and dividends are expected to grow at an annual rate of 5 percent indefinitely. If the stock sells for $45 per share, what is your best estimate of the company’s cost of equity??

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Financial Management: If the stock sells for 45 per share what is your best
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