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Cost of equity

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National Renta Center has a beta of $1.38 a stock price of $19. and recently paid an annual dividend of $0.94 a share. The dividend growth rate is 4.5 percent. The market has a 10.6 percent rate of return and a risk premium of 7.5 percent. What is the firm's cost of equity.

1. 7.05 percent
2. 8.67 percent
3. 9.13 percent
4.10.30 percent
e. 11.56 percent

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National Rent a Center has a beta of $1.38 a stock price of $19. and recently paid an annual dividend of $0.94 a share. The dividend growth rate is 4.5 percent.  The market has a 10.6 percent rate of return and a risk premium of 7.5 percent. What is the firms cost of equity.

1. 7.05 percent
2. 8.67 ...

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