What is the company cost of equity capital

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Reference no: EM132061921

1. Stock in Country Road Industries has a beta of 0.8. The market risk premium is 7 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $39 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

10.35%

8.55%

10.1%

6.6%

10.6%

2. The Up and Coming Corporation's common stock has a beta of 1.3. If the risk-free rate is 4 percent and the expected return on the market is 13 percent, what is the company's cost of equity capital? (Do not round your intermediate calculations.)

16.33%

14.91%

16.48%

15.7%

20.9%

3. When you engage in one of the following stock transactions, you are participating in a primary market transaction.

a. an initial public offering

b. a limit order

c. A stop loss order

d. A purchase on the margin

e. a discretionary transaction

Reference no: EM132061921

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