What is rogue transport cost of retained earnings

Reference no: EM13272005

The risk free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2 and a standard deviation of returns of 28%. Rogue Transport's marginal tax rate is 35%. Analysts expect Rogue Transport's dividends to grow by 6% per year for the foreseeable future. Using the capital asset pricing model, what is Rogue Transport's cost of retained earnings?

A) 16.4%
B) 17.7%
C) 19.6%
D) 20.1%

Reference no: EM13272005

Questions Cloud

Prepare a formal policy report : Identify the issue and how both the US government and Texas government have been currently addressing it (historical perspective).

Compute the self-inductance of this solenoid : A technician wraps wire around a tube of length 33 cm having a diameter of 7.9 cm. compute the self-inductance of this solenoid

If texas transport is only using irr to choose : The firm's weighted marginal cost of capital schedule is 12 percent for up to $6 million of investment; 16 percent for between $6 million and $18 million of investment; and above $18 million the weighted cost of capital is 18 percent.

Find the horizontal distance between two balls : A ball leaves a table with an initial horizontal velocity of 2.4 m/s. The height of the table is adjustable. What is the horizontal distance between the two landing locations of the ball

What is rogue transport cost of retained earnings : Analysts expect Rogue Transport's dividends to grow by 6% per year for the foreseeable future. Using the capital asset pricing model, what is Rogue Transport's cost of retained earnings?

Contemporary controversial moral issues : Arguments terminate in the question of whether certain conduct makes people better off or worse off - contemporary controversial moral issues and give your conclusion on that issue and your argument for that conclusion.

Compute the frequency of the wave : Given a wave produced by a simple harmonic oscillator whose displacement in meters is given by the equation [y = 0.3cos(36?t)]

Strengths, weaknesses and incentives between medicare : Strengths, weaknesses and incentives between Medicare and Medicaid.

What is the cost of capital for adventure outfitter : What is the cost of capital for Adventure Outfitter if the corporation raises money by selling common stock?

User Account

All Pages