What is the firm cost of equity

Assignment Help Financial Management

Reference no: EM131338779

The market rate of return is 11.8 percent and the risk-free rate is 3.45 percent. Galaxy Co. has 36 percent more systematic risk than the overall market and has a dividend growth rate of 3.5 percent. The firm's stock is currently selling for $42 a share and has a dividend yield of 2.8 percent. What is the firm's cost of equity?

Reference no: EM131338779

Questions Cloud

Which kite is higher and by how much : The angle that Markisha's kite string makes with the horizontal is 42°. Which kite is higher and by how much?

What is the probability that the project will result in loss : If returns from the project are normally distributed, what is the chance that the project will result in a rate of return above 33 percent?

Classification of economies : Classification of Economies: What are the arguments for using real per capita GNI to compare living standards between countries? What weakness does this measure have?

Three health care options of tricare : What are the three health care options of TRICARE? What is the role of a TRICARE PCM (primary care manager)?

What is the firm cost of equity : The market rate of return is 11.8 percent and the risk-free rate is 3.45 percent. Galaxy Co. has 36 percent more systematic risk than the overall market and has a dividend growth rate of 3.5 percent. The firm's stock is currently selling for $42 a sh..

Which stock would you consider to be riskier : The expected rate of return for the stock of Cornhusker Enterprises is 20 percent, with a standard deviation of 15 percent.- Which stock would you consider to be riskier? Why?

Develop first year recruitment plan for the three positions : Explain the need to develop three new positions including one first-level management position. These positions must be new and different than what you developed.Include a needs analysis, diversity issues, job analysis, job descriptions and qualific..

Accept the loan with the lower effective annual rate : Base decisions regarding investments on effective rates and base decisions regarding loans on annual percentage rates. Ignore the effective rates and concentrate on the annual percentage rates for all transactions. Accept the loan with the lower effe..

Currency crisis-cause and resolution : A number of currency crises have affected certain countries, which have also resulted in contagion in the sense that the crises affected neighboring countries. In a critical essay, select a country (or countries) affected by a specific currency cr..

User Account

All Pages