The CEO of the Geurts Corporation wants to know what its Cost of Retained Earnings is, when there is the following information:
Rd = 4% Rf = 3.5%
Market Risk Premium = 4.5%
Beta = 0.8
Last Dividend = $1.80
Growth Rate = 4%
Current Stock Price = $40
a. 7.87% b. 7.79% c. 7.93% d. 7.73% e. 8.02%