What is martha cost of equity

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Martha's Pancake House, Inc. just paid its annual dividend of $0.80 a share. The stock has a market price of $13.00 and a beta of 1.04. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 7.3 percent. What is Martha's cost of equity?

9.89 percent
10.09 percent
10.37 percent
10.65 percent
11.02 percent

 

Reference no: EM13270233

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