What is your best estimate of the company cost of equity

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Stock in CDB Industries has a beta of .98. The market risk premium is 7.3 percent, and T-bills are currently yielding 4.3 percent. CDB’s most recent dividend was $2.70 per share, and dividends are expected to grow at an annual rate of 5.3 percent indefinitely. The stock sells for $49 per share. Using the CAPM, what is your estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity % Using the dividend discount model, what is your estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity % What is your best estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %

Reference no: EM132018134

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