Ask Experts Questions for FREE Help !
Ask
    gbabydub11's Avatar
    gbabydub11 Posts: 6, Reputation: 1
    New Member
     
    #1

    Apr 4, 2008, 06:41 PM
    Calculating expected cost of equity
    :confused: 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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #2

    Apr 6, 2008, 02:14 PM
    Please see this guideline for posting homework problems:

    https://www.askmehelpdesk.com/math-s...board-b-u.html

    We need to see that you've at least made an attempt to do your own homework, or at least ask a specific question about where you are stuck. This goes for all the questions you sent in.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search


Check out some similar questions!

Finance / cost of equity and weighted average cost of capital [ 2 Answers ]

How do I go about calculating the after-tax cost of new debt and common equity. Calculate the cost of equity and calculate weighted cost of capital. I do not understand this a bit. The following tabulation gives earnings per share figures for the Foust Company during the preceding 10 years. The...

Cost of Debt vs Cost of Equity [ 1 Answers ]

What is cheaper Cost of Equity or Cost of Debt ?

Calculating the after-tax cost of new debt and common equity [ 0 Answers ]

Here is the problem. How do I go about calculating the after-tax cost of new debt and common equity. Calculate the cost of equity and calculate weighted cost of capital. I am really confused on this. The following tabulation gives earnings per share figures for the Foust Company during the...

Calculating the cost of damaged carpet. [ 1 Answers ]

How do I calculate the monetary damage incurred by tenants on carpet? The carpet has been professionally cleaned, however, there are large yellow stains that do not come out. These stains resulted from urine and/or emesis from a small dog. I have hired a carpet cleaning company to cut out the...


View more questions Search