Business, 12.11.2019 21:31, vallhernandez13

Analysts estimate the cost of debt capital for abbott laboratories (nyse: abt) is 2.13% and that its cost of equity capital is 4.1%. assume that abt's marginal tax rate is 36%, the risk-free rate is 5.3%, the market risk premium is 5.7%, the abt market price is $47.73 per common share, and its dividends are $1.26 per common share. (a) compute abt's average borrowing rate and its market beta. (round your answers to one decimal place.)

average borrowing rate =

market beta=

(b) assume that its dividends continue at the current level in perpetuity. use the constant perpetuity dividend discount model to infer the market's expected cost of equity capital. (hint: use price per share = dividends per share/cost of equity capital.) (round your answer to one decimal place.)

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Analysts estimate the cost of debt capital for abbott laboratories (nyse: abt) is 2.13% and that it...