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Title: The risk-free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta ... Post by: samualson on Jul 6, 2018 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% Title: The risk-free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta ... Post by: Marc18 on Jul 6, 2018 Content hidden
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