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Business, 18.12.2019 18:31 COOLIOMARIS

Stock in cdb industries has a beta of .94. the market risk premium is 7.4 percent, and t-bills are currently yielding 4.4 percent. the most recent dividend was $2.30 per share, and dividends are expected to grow at an annual rate of 5.4 percent indefinitely. if the stock sells for $45 per share, a. what is your best estimate of the company's cost of equity? b. using the dividend discount model, what is your estimate of cdb s cost of equity? c. what is your best estimate of cdbs cost of equity?

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