Question
1. CAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9 percent and the risk-free rate
1. CAPM Required Return A company has a beta of 1.14. If the market return is expected to be 11.9 percent and the risk-free rate is 3.95 percent, what is the company's required return?
2. Expected Return If a company's current stock price is $26.20 and it is likely to pay a $1.95 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
8th Edition
0324258917, 9780324258912
