Dynamic Logistics Inc.'s stock has a beta of 0.35. If the risk- free rate is 4.9% and the market risk premium is 6.8%, what is an estimate of Dynamic Logistics Inc.'s cost of equity? (Round to one decimal place.)

Dynamic Logistics Inc.'s stock has a beta of 0.35. If the risk- free rate is 4.9% and the market risk premium is 6.8%, what is an estimate of Dynamic Logistics Inc.'s cost of equity? (Round to one decimal place.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...

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Question

What is an estimate of dynamic logistics inc.s cost of equity on these financial accounting question?

Dynamic Logistics Inc.'s stock has a beta of 0.35. If the risk-
free rate is 4.9% and the market risk premium is 6.8%, what
is an estimate of Dynamic Logistics Inc.'s cost of equity?
(Round to one decimal place.)

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