Stock in dragula industries has a beta of 15 the market


Stock in Dragula Industries has a beta of 1.5. The market risk premium is 6 percent, and T-bills are currently yielding 4.70 percent. The company’s most recent dividend was $1.90 per share, and dividends are expected to grow at a 7.0 percent annual rate indefinitely. If the stock sells for $38 per share, what is your best estimate of the company’s cost of equity?

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Financial Management: Stock in dragula industries has a beta of 15 the market
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