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Ronald's Fast Food just paid their annual dividend of $1.05 a share. The stock has...

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Finance

Ronald's Fast Food just paid their annual dividend of $1.05 a share. The stock has a beta of .5. The return on the U.S. Treasury bill (risk-free rate) is 8 percent and the expected return on the market is 15 percent. What is the cost of equity?

Group of answer choices

11.05%

32.00%

11.50%

15.00%

19.20%

Answer & Explanation Solved by verified expert
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