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Baily Corp

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Baily Corp.just paid a $2.00 dividend to its common shareholders. Analysts expect these dividends to grow indefinitely at a 60% annual rate. The market price of the stock is $42.80. What is the firm's cost of equity? Select one: a. 4.95% b. 10.95% c. 6.00% d. 6.80% Bally-Hoo common stock has a beta coefficient of 1.40. Assume the risk-free rate is 3% and the market risk premium is 6%. What is the firm's cost of equity? of Select one: a. 10.5% b. 12.6% C. 11.4% d. 13.4% e. 8.9%