Southern Bakeries just paid its annual dividend of $.48 a share. The stock has a market...

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Southern Bakeries just paid its annual dividend of $.48 a share. The stock has a market...

Southern Bakeries just paid its annual dividend of $.48 a share. The stock has a market price of $17.23 and a beta of .93. The return on the U.S. Treasury bill is 3.1 percent and the market risk premium is 7.6 percent. What is the cost of equity?

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Cost of equity Risk free rate+ Beta x market risk premium 10.17% 3.1%+(0.93*0.076)

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Southern Bakeries just paid its annual dividend of $.48 a share. The stock has a market...

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