Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
samualson samualson
wrote...
Go to Answer
Posts: 2459
Rep: 13 0
5 years 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

Foundations of Finance


Edition: 9th
Authors:
Read 152 times
1 Reply
Replies
Answer verified by a subject expert
Marc18Marc18
wrote...
#1
Top Poster
Posts: 1080
Rep: 114 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

samualson Author
wrote...

5 years ago
Smart ... Thanks!
Loruiz15
wrote...

Yesterday
Thanks
spaghetti
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1152 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 230
  
 1502
  
 811
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: Which 'study break' activity do you find most distracting?