Estimate of country roads cost of equity is find percent

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Stock in Country Road Industries has a beta of 0.7830. The market risk premium is 10.3 percent, and T-bills are currently yielding 4.6 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $31.2 per share, your best estimate of Country Road's cost of equity is FIND percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13290372

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