Question
National Home Rentals has a beta of 1.24, a stock price of $22, and recently paid an annual dividend of $0.94 a share. The dividend
National Home Rentals has a beta of 1.24, a stock price of $22, and recently paid an annual dividend of $0.94 a share. The dividend growth rate is 4.5 percent. The risk-free rate is 3.1 percent and the expected market return is 10.6 percent. What is the firm's cost of equity?
A) 7.05
B) 8.67
C) 10.68
D) 10.90
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Project Finance
Authors: B Rajesh Kumar
1st Edition
3030967247, 978-3030967246
