LO 2 20. Calculating Cost of Equity Stock in CDB Industries has a beta of...
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LO 2 20. Calculating Cost of Equity Stock in CDB Industries has a beta of 1.10. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.1 percent. The most recent dividend was $2.56 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? TER
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