Rosie's Grill has a beta of 1.2, a stock price of $26 and an expected annual dividend of $1.30 a share which is to be paid next month. The dividend growth rate is 4 percent. The market has a 10 percent rate of return and a risk premium of 6 percent
What is the average expected cost of equity for Rosie's Grill?
A) 9.20 percent
B) 9.70 percent
C) 10.10 percent
D) 10.30 percent
E) 11.40 percent
C
You might also like to view...
It is best for the nonprofit marketing director to have a line function (instead of staff function) so as to
a. advise programs or people b. be a resource person or consultant c. influence top management to think in a marketing mindset d. not be constrained by planning and programs e. avoid being absorbed by public relations or fund development
What is the difference between an offensive and a defensive lockout and for each give an example of a situation in which an employer might want to use it. What are the rights of strikers and strike replacements in a lockout situation? (15 minutes)
What will be an ideal response?
Written evidence or an electronic record of a contract for a sale of goods priced at $50 or more is required
Indicate whether the statement is true or false
Which of the following is/are generally subject to a standard of strict liability for bailed goods?
A) contract carriers and common carriers B) common carriers and innkeepers C) common carriers D) contract carriers