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Bens Books has a beta of 1.2, a share price of R26 and an expected annual dividend of R1.30 per share which is to be
Bens Books has a beta of 1.2, a share price of R26 and an expected annual dividend of R1.30 per share which is to be paid next month. The dividend growth rate is 4%. The market has a 10% rate of return and a risk premium of 6%. What is the average expected cost of equity for Bens Books?
A 9.2%
B 10.1%
C 9.7%
D 11.2%
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