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Problem 9 Intro Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 3% forever.

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Problem 9 Intro Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 3% forever. Its stock price is $35.9 and its beta is 1.2. The risk-free rate is 2% and the expected return on the market portfolio is 8%. Io Attempt 3/5 for 8 pts. Part 1 What is the best guess for the cost of equity? 3+ decimals Submit

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