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Calculating Cost of Equity [LO1] Stock in Daenerys Industries has a beta of 1.43. The market risk premium is 7.5 percent, and T-bills are currently yielding 3.5 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely. If the stock sells for $30 per share, what is your best estimate of the company's cost of equity? Multiple Choice a) 9.22% b) 11.17% c) 12.71% d) 14.23% e) 13.47%
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