Question
The CEO of the Geurts Corporation wants to know what its Cost of Retained Earnings is, when there is the following information: Rd = 4%
The CEO of the Geurts Corporation wants to know what its Cost of Retained Earnings is, when there is the following information:
Rd = 4%
Risk Premium of Rd = 4%
Rf = 3.5%
Market Risk Premium = 4.5%
Beta = 0.8
Last Dividend = $1.80
Growth Rate = 4%
Current Stock Price = $40
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
7th Edition
0030333288, 9780030333286
