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Business, 25.12.2019 03:31 kitt90335

Stock in parrothead industries has a beta of 1.10. the market risk premium is 8 percent, and t-bills are currently yielding 5.5 percent. parrothead’s most recent dividend was $2.20 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely.

if the stock sells for $32 per share, what is your best estimate of parrothead’s cost of equity?

use the dividend growth model and sml or capm method.

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Stock in parrothead industries has a beta of 1.10. the market risk premium is 8 percent, and t-bills...
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