Question
A stock has a realized return of 8% and an expected return of 12%. Treasury bonds are currently returning 3% while the S&P is returning
A stock has a realized return of 8% and an expected return of 12%. Treasury bonds are currently returning 3% while the S&P is returning 11%. The stock is expected to pay a dividend of $5 and has an estimated beta of 1.2. What is the after-tax cost of this firms equity if the firm has a tax rate of 40%?
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Gapenskis Understanding Healthcare Financial Management
Authors: George H. Pink, Paula H. Song
8th Edition
1640551093, 978-1640551091
