Top Posters
Since Sunday
26
21
21
21
20
19
19
19
18
18
18
18
New Topic  
wrote...
Posts: 2725
A year ago
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%
Textbook 
Foundations of Finance
Edition: 9th
Authors:
Read 16 times
3 Replies
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 1291
A year ago
Sign in or Sign up in seconds to unlock everything.
 D
 
1
Related Topics
wrote...
A year ago
Answer's right... I appreciate your help and guidance
wrote...
A year ago
Glad I could do that for you
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  116 People Browsing
Related Images
 9480
 49
 31