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Calculating expected cost of equity
Asked Apr 4, 2008, 06:41 PM
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1 Answer  Rosie's Grill has a beta of 1.2, a stock price of $26 and an expected annual divident of $1.30 a share which is to be paid next month. The divident growth rate is 4%. The market has a 10% rate of return and a risk premium of 6%. What is the average expected cost of equity for Rosie's Grill? |
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