# Calculating expected cost of equity

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?

 morgaine300 Posts: 6,564, Reputation: 1474 Uber Member #2 Apr 6, 2008, 02:14 PM
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