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xxx is 12% Old Country Lemonade has a beta of.9, a stock price of $28, and recently paid an annual dividend of $1.10 a share.

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Old Country Lemonade has a beta of.9, a stock price of $28, and recently paid an annual dividend of $1.10 a share. The dividend growth rate is 3 percent. The market has an xxx rate of return and a risk premium of 7 percent. What is the average expected cost of equity for Old Country Lemonade (Hint: Calculate Re by two different models and average the two results)

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