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Intro Amazon has a beta of 1 . The risk-free rate is 1.7% and the expected return on the S&P500 is 5%. Part 1 Attempt
Intro Amazon has a beta of 1 . The risk-free rate is 1.7% and the expected return on the S&P500 is 5%. Part 1 Attempt 1/10 for 10 pts. What is Amazon's cost of equity? Part 2 Attempt 1/10 for 10 pts. Now assume that the expected market risk premium is 5%. What is Amazon's cost of equity? Intro Luna Lemon has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 4% forever. Its stock price is $36.2. Part 1 Attempt 1/10 for 10 pts. What is Luna Lemon's cost of equity
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