Question
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 8%
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 8% forever. Its stock price is $38 and its beta is 0.7. The risk-free rate is 2% and the expected return on the market portfolio is 8%. Part 1 What is the best guess for the cost of equity? 3+ decimals Submit Attempt 2/5 for 8 pts.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
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