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What is the cost of equity

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Reference no: EM13281947

Southern Home Cookin' just paid its annual dividend of $0.65 a share. The stock has a market price of $13 and a beta of 1.12. The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 6.8 percent. What is the cost of equity?

A. 9.98
B.10.04
C. 10.12
D 10.37

 

Reference no: EM13281947

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