What is your best estimate of company cost of equity

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Stock in CDB Industries has a beta of 1.06. The market risk premium is 7.1 percent, and T-bills are currently yielding 4.1 percent. CDB’s most recent dividend was $3.00 per share, and dividends are expected to grow at an annual rate of 5.1 percent indefinitely. If the stock sells for $52 per share, what is your best estimate of the company's cost of equity?

Reference no: EM131530021

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