15. Tangential is an all-equity financed firm. The beta is .90, the market risk premium...
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15. Tangential is an all-equity financed firm. The beta is .90, the market risk premium is 5.7 percent, and the tax rate is 21 percent. The firm just issued its annual dividend of $5.50 per share and announced that future dividends will increase by 4.5 percent annually. The stock sells for $53.25 per share. What is the cost of equity?
Multiple Choice
a. 14.83%
b. 4.05%
c. 10.32%
d. 10.78%
e. 15.29%
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