Question
1) Ally Financial stock has a Beta of 0.5. If the expected market return is 9.2% and the risk free rate is 3%, what is
1) Ally Financial stock has a Beta of 0.5. If the expected market return is 9.2% and the risk free rate is 3%, what is the expected return of Ally Financial stock?
2)Apple issued a dividend of $2.62 this year, and a dividend of $2.23 last year. What is apple's dividend growth rate? Please give answers to 2 decimal places as a percentage
3) Apple has a current dividend of $2.56 and a dividend growth rate of 4.4%. If the CAPM gives the expected return on apple stock of 7.7% what should the stock price be according to the dividend discount formula?
4)Apple has a current dividend of $2.55 and a dividend growth rate of 5.5%. If the CAPM gives the expected return on apple stock of 6.1% what should the stock price be in 36 years according to the dividend discount model?
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