Shares in kelpie industries have a beta of 09 the market

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Shares in Kelpie Industries have a beta of 0.9. The market risk premium is 8%, and short-term government bonds are currently yielding 4.5%. Kelpie's most recent dividend was $2.60 per share, and dividends are expected to grow at a 5% annual rate indefinitely. If the share price is $48, what is your best estimate of Kelpie's cost of equity?

Reference no: EM13567446

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