Medical Supply Company has a beta of 1.55 and recently paid a common stock dividend of $3.47. If the return on Treasury securities is currently 7.5% and the return on the S&P 500 index is 12%, what is the required rate of return on the firm's common stock? 

a) 7.5% 

b) 18.5% 

c) 14.48% 

d) 26.1% 

e) 12.93%

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To calc... View the full answer