Stock in Daenerys Industries has a beta of 0.97. The market risk premium is 9.5 perc and T-bills are currently yielding 4 percent. The company's most recent dividend was per share, and dividends are expected to grow at a 6 percent annual rate indefinite the stock sells for $38 per share, what is your best estimate of the company's co equity?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 3P
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Stock in Daenerys Industries has a beta of 0.97. The market risk premium is 9.5 perc
and T-bills are currently yielding 4 percent. The company's most recent dividend was
per share, and dividends are expected to grow at a 6 percent annual rate indefinite
the stock sells for $38 per share, what is your best estimate of the company's co
equity?
Transcribed Image Text:Stock in Daenerys Industries has a beta of 0.97. The market risk premium is 9.5 perc and T-bills are currently yielding 4 percent. The company's most recent dividend was per share, and dividends are expected to grow at a 6 percent annual rate indefinite the stock sells for $38 per share, what is your best estimate of the company's co equity?
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