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Business, 18.12.2019 03:31 allisonmoon9012

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

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