Rosie's Grill has a beta of 1.2, a stock price of $26 and an expected annual dividend of $1.30 a share which is to be paid next month (i.e. D1 is $1.30). The dividend growth rate is 4 percent. The market has a 10 percent rate of return and a risk premium of 6 percent. What is the average expected cost of equity for Rosie's Grill? 9.20 percent 9.70 percent 10.10 percent O 10.30 percent 11.40 percent ww

Rosie's Grill has a beta of 1.2 , a stock price of $26 and an expected annual dividend of $1.30 a share which is to be paid next month (i.e. D1 is $1.30 ). The dividend growth rate is 4 percent. The market has a 10 percent rate of return and a risk premium of 6 percent. What is the average expected cost of equity for Rosie's Grill? 9.20 percent 9.70 percent 10.10 percent 10.30 percent 11.40 percent