Stock in dragula industries has a beta of 11 the market

Reference no: EM13394247

Stock in Dragula Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 4.5 percent. The company's most recent dividend was $1.70 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely.

If the stock sells for $39 per share, what is your best estimate of the company's cost of equity?

Reference no: EM13394247

Questions Cloud

If price of graham crackers is 250 must firms raise or : data for the market for graham crackers is shown below. calculate the elasticity of demand between the following

Describe the companys target market for the product or : throughout this class you have examined the product or service of a company and addressed market segmentation pricing

Select three items from the income statements that you feel : consider general motors and ford both automobile manufacturers examine their financial data online and answer the

Write down the steps to conduct a hypothesis test explain : hypothesis testing is a well-structured process that consists of several logical steps and it aims at refining a

Stock in dragula industries has a beta of 11 the market : stock in dragula industries has a beta of 1.1. the market risk premium is 7 percent and t-bills are currently yielding

Corporations are the only legal entity that issues stock : corporations are the only legal entity that issues stock for ownership. describe the aspects of a corporation and the

What are some ways in which companies can ensure they are : what are some ways in which companies can ensure they are properly incorporating their intangible intellectual capital

The warehouse manager asked you to make an illustration : the warehouse manager asked you to create an example inventory list for his staff. the inventory list is a

Explain the economic theory of regulation contrast the : describe the economic theory of regulation. contrast its predictions to the public interest theory of regulation with

Reviews

Write a Review

Required(*) Message

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?

Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

Accounting problems

Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.

Theory of interest - term structure of interest rates

Term Structure of Interest Rates

Write a report on internal controls

Write a report on Internal Controls

Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

Liquidity and profitability

Distinguish between liquidity and profitability.

What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

Capm and venture capital

CAPM and Venture Capital

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages