FIN 335 – Stock in a company has a beta of 1.2.
Inventory in an organization has a beta of 1.2. The market threat premium is 7%, and the T-bills are at the moment yielding at 5.5%. The corporate's most up-to-date dividend was $2.20 per share, and dividends are anticipated to develop at 5% annual charge indefinitely. If the inventory sells for $36 per share, what's your finest estimate of the corporate's price of fairness?