Tanrun Inc. is expected to pay an annual dividend of $0.45 per share in one year....
Tanrun Inc. is expected to pay an annual dividend of $0.45 per share in one year. Analysts expect the firm's dividends to grow by 2% forever. Its stock price is $37.6 and its beta is 0.8. The risk-free rate is 2% and the expected market risk premium is 4.5%.
What is the best guess for the cost of equity?
Tried with 0.0319, 0.0556 but it turns out to be wrong answers
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Tanrun Inc. is expected to pay an annual dividend of $0.45 per
share in one year....
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