Business: Donut delites has a beta of 1.06, a dividend growth rate of 3.2 percent, a stock price of $12 a share, and an expected annual dividend of $.84 per share next year. the market rate of return is 11.4 percent and the risk-free rate is 3.8 percent. what is the firm s cost of equity?

Donut delites has a beta of 1.06, a dividend growth

Ответ:

rebecca7415

02.06.2020

RE = .038 + 1.06(.114-.038) = .11856 ; RE = ($.68/$12) + .012 = .06867 ; Average RE = (.11856 + .06867)/2 = .0936, or 9.36 percent

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Ответ:

janeou17xn

25.03.2022

Business

I think it would be B

Explanation:

hope this helps if not please let me know

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Donut delites has a beta of 1.06, a dividend growth rate of 3.2 percent, a stock price of $12 a share, and an expected annual dividend of $.84 per share next year. the market rate of return is 11.4 percent and the risk-free rate is 3.8 percent. what is the firm's cost of equity?

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