Stock in CDB Industries has a beta of .92. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDB's most recent dividend was $2.10 per share, and dividends are expected to grow at a 5.2 percent annual rate indefinitely.
Required:
If the stock sells for $43 per share, what is your best estimate of CDB's cost of equity?