If the stock sells for 52 per share what is your best


Stock in CDB Industries has a beta of 1.06. The market risk premium is 7.1 percent, and T-bills are currently yielding 4.1 percent. CDB's most recent dividend was $3.00 per share, and dividends are expected to grow at an annual rate of 5.1 percent indefinitely.

If the stock sells for $52 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 52 per share what is your best
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