Setting up a communication center in India requires a capital budgeting decision

In mediation an attempt is made to have the parties to the dispute reach their own agreement

Indicate whether the statement is true or false

Rosie's Grill has a beta of 1.2, a stock price of $26 and an expected annual dividend of $1.30 a share which is to be paid next month. The dividend growth rate is 4 percent. The market has a 10 percent rate of return and a risk premium of 6 percent

What is the average expected cost of equity for Rosie's Grill? A) 9.20 percent B) 9.70 percent C) 10.10 percent D) 10.30 percent E) 11.40 percent