Stock in country Road Industries has a beta of 1.46. The market risk premium is 7.5 percent while T-bills are currently yielding 2.5 percent. Country Road's last dividend was $1.55 per share and dividends are expected to grow at an annual rate of 4.5 percent indefinitely. The stock sells for $26 a share. What is the estimated cost of equity?
a. 11.96 percent
b. 13.45 percent
c. 10.73 percent
d. 12.09 percent
e. 10.46 percent
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Stock in country Road Industries has a beta of 1.46. The market risk premium is 7.5 percent while T-bills are currently yielding 2.5 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. a.
Answers (1)
On January 2, 2009, L Co. issued at par $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds were converted during 2009. Throughout 2009, L had 1,000 shares of common stock outstanding.
Answers (1)
What caused the Great Recession of 2008-2009? Question 36 options: housing market colapse stock market crash People buying stocks on the margin increased oil prices
Answers (2)
If you don't want to purchase individual stocks, bonds, and other investments, you can get them packaged together in a___? The options are A. Bond B. Mutual Fund C. Stock
Answers (1)
What is a trade-off? A.) decreasing the amount of resources spent on all wants to reduce the total costs in future B.) replacing one resource with another resource to satisfy a want C.
Answers (1)
New Questions in Business
If i have a savings account earning 4.5% interest how long will it take for my money to double
Answers (1)
Pitt corp makes and sells a single product, widgets. two pounds of sand are needed to make one widget.
Answers (1)
What is networking in business?
Answers (1)
The preferred stock of General Motors pays an annual dividend of $1.6 forever. The appropriate discount rate is 7% per year. Attempt 1/3 for 10 pts. Part 1 What is the present value of all dividends
Answers (1)
Andrew and Bthe Trimble live in Swarthmore, PA. Beth's father, Darnell, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U. S.
Answers (1)