Southern Home Cookin' just paid its annual dividend of $.75 a share. The stock has a market price of $32 and a beta of 1.1. The return on the U.S. Treasury bill is 5 percent and the market risk premium is 14 percent. What is the cost of equity?
Answer to relevant QuestionsFour months ago, you purchased 1,200 shares of Lakeside Bank stock for $21.20 a share. You have received dividend payments equal to $.56 a share. Today, you sold all of your shares for $22.20 a share. What is your total ...You own a portfolio that has $20,000 invested in Albuquerque Mining and $14,000 invested in Oklahoma City Drilling. The expected returns on these stocks are 12.5 percent and 9 percent, respectively. What is the expected ...A nut wholesaler sells a mix of peanuts and cashews. He charges $2.80 per pound for peanuts and $5.30 per pound for cashews. If the mix is to sell for $3.30 per pound, how many pounds each of peanuts and cashews should be ...Jacob Lee is a frequent traveler between Los Angeles and San Francisco. For the past month, he wrote down the flight times on three different airlines. The results are:Goust: 51,51,52,42,51,57,47,47,50,60,54,49,48,48Jet Red: ...The random variable x is the number of houses sold by a realtor in a single month at the real-estate office. Its probability distribution is:Houses sold (x) Probability P(x)0 ...
Post your question