Question
Southern Home Cookin' just paid its annual dividend of $.75 a share. The stock has a market price of $29 and a beta of 1.1.
Southern Home Cookin' just paid its annual dividend of $.75 a share. The stock has a market price of $29 and a beta of 1.1. The return on the U.S. Treasury bill is 4 percent and the market risk premium is 11 percent. What is the cost of equity?
rev: 09_04_2018_QC_CS-136177
A. 17.82 percent
B. 13.57 percent
C. 16.10 percent
D. 19.70 percent
E. 12.14 percent
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
