cost of equity as per CAPM=risk-free rate +Beta*(MArket rate- risk-free rate ) cost of equity as per growth model=(D1/Current price)+Growth rate

answer is NOT .051

Intro Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 2% forever. Its stock price is $35.3 and its beta is 0.9. The risk-free rate is 2% and the expected return on the market portfolio is 8%. IE- Attempt 1/10 for 10 pts. Part 1 What is the best guess for the cost of equity? 3+ decimals Submit