Stock in cdb industries has a beta of 093 the market risk


Stock in CDB Industries has a beta of 0.93. The market risk premium is 7.3 percent, and T-bills are currently yielding 4.3 percent. CDB’s most recent dividend was $2.20 per share, and dividends are expected to grow at a 5.3 percent annual rate indefinitely. If the stock sells for $44 per share, what is your best estimate of CDB’s cost of equity?

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Financial Management: Stock in cdb industries has a beta of 093 the market risk
Reference No:- TGS01219371

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