Southern Home Cookin' just paid its annual dividend of $.75 a share. The stock has a market

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Southern Home Cookin' just paid its annual dividend of $.75 a share. The stock has a market price of $32 and a beta of 1.1. The return on the U.S. Treasury bill is 5 percent and the market risk premium is 14 percent. What is the cost of equity?


Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Investments

ISBN: 978-0077861674

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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