Business Finance Homework Help
Business Finance Homework Help. Cost of Retained Earnings
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?
Business Finance Homework Help
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