What is your best estimate of the companys cost of equity

Reference no: EM133633515

Question: Stock in Eduardo Industries has a beta of .93. The market risk premium is 7.3 percent, and T-bills are currently yielding 4.3 percent. The most recent dividend was $2.20 per share, and dividends are expected to grow at an annual rate of 5.3 percent, indefinitely. If the stock sells for $44 per share, what is your best estimate of the company's cost of equity?

Reference no: EM133633515

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