Question
01 The risk-free rate of interest is 5% and the market risk premium is 8%. Constantine Corporation has a beta of 1.8, and last year
01 The risk-free rate of interest is 5% and the market risk premium is 8%. Constantine Corporation has a beta of 1.8, and last year generated a 15% return with a standard deviation in returns of 34%. The required rate of return on Miller Corporation stock is:
02.
The market risk premium is 12% and the risk free rate of return is 3%. Kent Constructions marginal tax rate is 40% and its beta is 1.8. Analysts expect Kents dividends to grow by 5% per year for the foreseeable future. Using the capital asset pricing model, what is Kents cost of retained earnings
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