tock in CDB Industries has a beta of .91. The market risk premium is 7.1 percent, and T-bills are currently yielding 4.1 percent. The most recent dividend was $2.00 per share, and dividends are expected to grow at an annual rate of 5.1 percent indefinitely. If the stock sells for $42 per share, what is your best estimate of the company's cost of equity

On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e.g. $2.55.) diluted earnings per share