Question
Southern Home Cookin' just paid its annual dividend of $0.42 a share. The stock has a market price of $20 and a beta of 0.8.
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Southern Home Cookin' just paid its annual dividend of $0.42 a share. The stock has a market price of $20 and a beta of 0.8. The return on the U.S. Treasury bill is 3 percent and the market return is 14 percent. What is the cost of equity?
A. 8.8 percent
B. 11.2 percent
C. 11.8 percent
D. 14.2 percent
E. None of the above
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Faith Family And Finances Strong Foundations For A Better Life
Authors: Henry Fernandez, Kenneth Copeland
1st Edition
1603742808, 978-1603742801
