Best estimate of cdb''s cost of equity

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Reference no: EM131012570

Stock in CDB Industries has a beta of 1 .11. The market risk premium is 7.1 percent, and T-bills are currently yielding 4.1 percent . cDB's most recent dividend was $3.50 per share , and dividends are expected to grow at a5.1 percent annual rate indefinitely. If the stock sells for $ 57 per share, what is your best estimate of CDB's cost of equity?

Reference no: EM131012570

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