Block stock sells for $31 per share. It just paid a dividend of $1.14 per share. The company has a growth rate of 4% annually. The return of market is 6%. T - bill have a rate of 2.5%. The bond - yield risk premium is 4%. Block's beta is 1.17 What is the cost of equity for Block?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Block stock sells for $31 per share. It just paid a dividend of $1.14 per share. The
company has a growth rate of 4% annually. The return of market is 6%. T - bills
have a rate of 2.5%. The bond - yield risk premium is 4%. Block's beta is 1.17.
What is the cost of equity for Block?
Transcribed Image Text:Block stock sells for $31 per share. It just paid a dividend of $1.14 per share. The company has a growth rate of 4% annually. The return of market is 6%. T - bills have a rate of 2.5%. The bond - yield risk premium is 4%. Block's beta is 1.17. What is the cost of equity for Block?
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