The return on the us treasury bill is 25 percent and the


Southern Home Cookin' just paid its annual dividend of $0.65 a share. The stock has a market price of $13 and a beta of 1.12. The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 6.8 percent. What is the cost of equity?

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Finance Basics: The return on the us treasury bill is 25 percent and the
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