Stock in Dragula Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 5.00 percent. The company's most recent dividend was $1.40 per share, and dividends are expected to grow at a 7.0 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))
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Home » Business » Stock in Dragula Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 5.00 percent. The company's most recent dividend was $1.40 per share, and dividends are expected to grow at a 7.