What''s the cost of equity under the capm

Assignment Help Financial Management

Reference no: EM132003277

Suppose your company has a beta of 1.5. The market risk premium is expected to be 9% and the current risk-free rate is 3%. We have used analysts' estimates to determine that the market believes our dividends will grow at 5% per year and our last dividend was $2.5. Our stock is currently selling for $45. What's the cost of equity under the CAPM?

Reference no: EM132003277

Questions Cloud

What is after tax cost of this debt for wacc purposes : What is the market interest rate on Jana’s debt, and what is after tax cost of this debt for WACC purposes?

Expected roe if finances entirely with common stock : What is the difference between CCC's expected ROE if it financeswith 35% debt versus its expected ROE if it finances entirely with common stock?

What is ratio of market value of equity to its book value : What is the ratio of the market value of equity to its book value?

Punishes the owner of liquor store : An ordinance that punishes the owner of a liquor store for his employee's sale of alcohol to a minor even if owner was unaware of and not present for alcohol

What''s the cost of equity under the capm : Our stock is currently selling for $45. What's the cost of equity under the CAPM?

Best defense to criminal negligence charge : Danny bought cute little bunny rabbits that he kept in the driveway in front of his house. Danny's best defense to a CRIMINAL NEGLIGENCE charge is:

Company will maintain dividend for the next six years : The company will maintain this dividend for the next 6 years and will then cease paying dividends forever.

Case beyond reasonable doubt at criminal trial : A defendant is charged with a crime, but the prosecutor failed to prove the case beyond a reasonable doubt at a criminal trial.

Leaving the scene of an accident is not inherently evil : Leaving the scene of an accident is not inherently evil, but wrong because it is prohibited by statute. Therefore, it is a ________ crime.

User Account

All Pages