Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. stock in daenerys industries has a beta of 1.1. th

Stock in Daenerys Industries has a beta of 1.1. The market risk premium is 9.5...

50.1K

Verified Solution

Question

Finance

Stock in Daenerys Industries has a beta of 1.1. The market risk premium is 9.5 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity?

  • 11.44%

  • 10.15%

  • 13.45%

  • 11%

  • 12.45%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

A company currently pays a dividend of $2.25 per share (D0 = $2.25). It is estimated...

Statistics
1.2K views

A real estate agent would like to know if the number of bedrooms in a house...

Calculus
1.2K views

Find an equation for the tangent line to y f x at the specified point...

Calculus
1.2K views

2 17 pts Use limit properties algebraic simplification tables of values and or graphs to...

Accounting
1.2K views

Legend Service Center just purchased an automobile hoist for $27,400. The hoist has...

Accounting
1.2K views

h Crane Inc. is considering one of the three...

Accounting
1.2K views

Pastina Company sells various types of pasta to grocery chains as private label brands. The...

Accounting
1.2K views

x Company uses the high-low method, with production as the activity measure, to predict monthly...

Accounting
1.2K views

For a lease, a lessor recognizes revenue on the sale and records the asset lease....

Accounting
1.2K views

Hello, I need some help figuring out how to calculate the second answer for this...

Accounting
1.2K views

Problem 13-21 (Static) Dropping or Retalning a Flight (L013-2) 5,800 Profits have been decreasing for...

Accounting
1.2K views

Pittman Framing's cost formula for its supplies cost is $1,050 per month plus $15 per...