What is your best estimate of the company cost of equity

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Reference no: EM131859806

Stock in Country Road Industries has a beta of 1.08. The market risk premium is 9 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely. If the stock sells for $32 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

Reference no: EM131859806

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