Calculating Cost of Equity. Stock in CDB Industrie…

Paper , Order, or Assignment Requirements

Calculating Cost of Equity. Stock in CDB Industries has a beta of 1.10. The market risk premium is 7.8 percent, and T-bills are currently yielding 3.5 percent. CDB’s most recent dividend was $2.35 per share, and dividends are expected to grow at an annual rate of 5 percent indefinitely. If the stock sells for $45 per share, what is your best estimate of the company’s cost of equity?

find the cost of your paper
Responses are currently closed, but you can trackback from your own site.