Market risk premium and t-bills are currently yielding

Assignment Help Financial Management

Reference no: EM13917933

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?

Reference no: EM13917933

Questions Cloud

Straight line depreciation. : What is the net present value of the freezer if the required return is 6% and the income tax rate is 30%? Should the freezer be purchased? Assume straight line depreciation.

What is pretax cost of debt-what is aftertax cost of debt : Peyton’s Colt Farm issued a 30-year, 9.8 percent semiannual bond 5 years ago. The bond currently sells for 87.0 percent of its face value. The company’s tax rate is 40 percent. What is cost of debt? What is pretax cost of debt? What is aftertax cost ..

What is firms weighted average cost of capital : Harlan County Mining, a Kentucky-based coal mine, has expected earnings before interest and taxes of $6.2 million. Its unlevered cost of capital is 13 percent and its tax rate is 34 percent. The firm has debt with both a book and a market value of $3..

Utp cabling minimum for a telephone cable : What category of UTP cabling is the minimum for a telephone cable? Cat 5 is used for telephone cable, before Cat 5, Cat 3 was used. What category of cabling should be installed as a best practice for a telephone cable? Cat 5

Market risk premium and t-bills are currently yielding : 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 indefi..

Primarily black-and-white brightness receptors : 1. The visual receptors in the eyes called ___________ function best in dim lighting and are primarily black-and-white brightness receptors.

Critical components of distribution strategy : The two critical components of distribution strategy are _____ and _____. a. marketing channels; logistics and supply-chain management b. physical distribution; relationship marketing c. location; cost d. warehousing; transportation

Analysis of the problem that you selected : In one paragraph, at the end of your paper, reflect on your analysis of the problem that you selected. Describe how your consideration of this problem demonstrated deep learning

Create and update resource information for projects : (Worth 20% of the homework grade) Draw the level 1 data flow diagram (DFD) for GEMS process 2, Update Resources, which is the process that will create and update resource information for projects being tracked in GEMS.

User Account

All Pages