Worth While Entertainment has common stock with a beta of 1.46. The market ri premium is 7.5 percent and the risk-free rate is 2.7 percent. What is th on this stock? 7. sk e expected return Answer: 13.65% The Brown Company to increase the dividend by 5 percent per year indefinitely. What is the firm's cost of equity if the current stock price is $10.00 a share? just paid its first annual dividend of $1.00 a share. The firm plans Answer: 15.5% what is a firm's WACC if the capital structure of the firm is 30% equity and 70% debt? The after tax cost of debt is 8% and the cost of equity is 13 %. 9, Answer: 9.5% You 10. You purchased 500 shares of a company's stock for $5,000, one year ago. received a one time dividend of $.40 per share. You sold the stock last week for $12.00 per share. What is the total return on this investment? 24%