Stock in cdb industries has a beta of 1.14. the market risk premium is 7.4 percent, and t-bills are currently yielding 4.4 percent. the most recent dividend was $3.80 per share, and dividends are expected to grow at an annual rate of 5.4 percent indefinitely. the stock sells for $60 per share. using the capm, what is your estimate of the company's cost of equity?

7.82%

Explanation:

In CAPM (capital asset pricing model), cost of equity = Risk free rate of return + Beta × (market rate of return – risk free rate of return)

T-bill is treasury bill backed up by governement, then cosidered is risk free rate.

Using the CAPM, the company's cost of equity = T-bills yielding 4.4% + beta 1.14 x (market risk premium 7.4% -  T-bills yielding 4.4%)

= 4.4% +1.14*(7.4%-4.4%) = 7.82%

the answer is a.

by: nicholas dooley

among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.  

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.