What is your best estimate of the company cost of equity

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Reference no: EM131316522

Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 8 percent, and T-bills are currently yielding 4.6 percent. The company’s most recent dividend was $1.60 per share, and dividends are expected to grow at an annual rate of 7 percent indefinitely.

If the stock sells for $32 per share, what is your best estimate of the company’s cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

Reference no: EM131316522

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What is your best estimate of the company cost of equity : Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 8 percent, and T-bills are currently yielding 4.6 percent. The company’s most recent dividend was $1.60 per share, and dividends are expected to grow at an annual rate of 7 pe..

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