What is the cost of equity

Reference no: EM13266808

Southern Home Cookin' just paid its annual dividend of $.80 a share. The stock has a market price of $26 and a beta of 1.1. The return on the U.S. Treasury bill is 4 percent and the market risk premium is 12 percent. What is the cost of equity?

13.24 percent
17.20 percent
14.67 percent
20.80 percent
18.92 percent

Reference no: EM13266808

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What is the cost of equity : Southern Home Cookin' just paid its annual dividend of $.80 a share. The stock has a market price of $26 and a beta of 1.1. The return on the U.S. Treasury bill is 4 percent and the market risk premium is 12 percent. What is the cost of equity?

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