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New House corporation has a beta of 2.50, the risk free rate of interest is currently 11 percent and the required rate of return on
New House corporation has a beta of 2.50, the risk free rate of interest is currently 11 percent and the required rate of return on the market porfolio is 19. percent. The company plans to pay a dividend of 3.57 per share in the coming year and anticipates that its future dividens will increase at an annual rate consistent with that experienced over the 2019-20201 period as in the table below.
What is the difference in the efficetive annual rates charged by tghe two banks?
Year Dividens
2021. 3.37
2020 3.18
2019 3
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