Suppose shares in Tassie Air Freight have a beta of 1.2. The market risk premium is 7
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Suppose shares in Tassie Air Freight have a beta of 1.2. The market risk premium is 7 per cent and the risk-free rate is 6 per cent. Tassie’s last dividend was $2 per share and the dividend is expected to grow at 8 per cent indefinitely. The shares currently sell for $30. What is Tassie’s cost of equity capital?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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