The common stock of Chelsea, Inc. has a beta of 1.14, a market price of $38.90, and an expected dividend of $.90 next year. The market risk premium is 6% and the risk-free rate of return is 3%. What is the average expected cost of equity for Chelsea, Inc.?

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The Answer of The common stock of Chelsea, Inc. has a beta of 1.14, a market price of $38.90, and an expected dividend of $.90 next year. The market risk premium is 6% and the risk-free rate of return is 3%. What is the average expected cost of equity for Chelsea, Inc.?

The Common Stock of Chelsea, Inc