Stock in dragula industries has a beta of 1.1. the market risk premium is 7 percent, and t-bills are currently yielding 4.5 percent. the company’s most recent dividend was $1.70 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely. if the stock sells for $39 per share, what is your best estimate of the company’s cost of equity?

Logan is an employee who processes health insurance forms. initially he was criticized by his supervisor for sloppy work, but thereafter he improved considerably. now he consistently processes his forms without errors and even does more than his fair share of work. however, logan's supervisor has not responded to the extra effort he has put in, giving him no praise or monetary benefits. this leads logan to believe that his supervisor is biased against him. according to the expectancy theory, in this situation, there is a problem in the relationship. a) rewards-personal goals b) performance-awarenessc) performance-rewardd) performance-objectivese) performance-achievement