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The risk - free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2 and a
The risk - free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2 and a standard deviation of returns of 28%. Rogue Transport's marginal tax rate is 35%. Analysts expect Rogue Transport's dividends to grow by 6% per year for the foreseeable future. Using the capital asset pricing model, what is Rogue Transport's cost of retained earnings? O A. 16.4% O B. 20.1% O c. 17.7% O D. 19.6% fe, 9e
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