What is the best estimate of sage construction company

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Sage Construction Company has paid dividends that have increased on average by 2 % every year for the last 4 years. This year's dividend was $5.25. The current stock price is $107.10. In addition, Sage Construction Company's beta has been estimated at .85. The risk free rate is estimated at 2.3% and the market risk premium is 7.3%. What is the best estimate of Sage Construction Company 's cost of equity? Explain why you picked this estimate?

Reference no: EM131861914

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