how do you differentiate a risk premium and risk free rate? Eg. Rosie has a beta of

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how do you differentiate a risk premium and risk free rate? Eg. Rosie has a beta of 1.2, a share price of R26 and an expected annual dividend of R1.30, a share which is to be paid next month. The dividend growth rate is 4%. The market has a 10% rate of return and a risk premium of 6%. What is the average expected cost of equity for Rosie?

Posted Date: May 19, 2024 02:14 PM

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how do you differentiate a risk premium and risk free rate? Eg. Rosie has a beta of

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