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Business, 12.12.2019 03:31 daniecott

Stock in abc enterprises has a beta of 1.28. the market risk premium is 7.4 percent, and t-bills are currently yielding 3.6 percent. abc's most recently paid dividend was $1.62 per share, and dividends are expected to grow at an annual rate of 2 percent indefinitely. if the stock sells for $38 a share, what is your best estimate of abc's cost of equity? 9.71 percent 9.41 percent 9.78 percent 7.82 percent 7.41 percent ( show work)

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