Question
#1 The risk-free rate is 1.53% and the market risk premium is 9.08%. A stock with a of 0.81 just paid a dividend of $1.53.
#1
The risk-free rate is 1.53% and the market risk premium is 9.08%. A stock with a of 0.81 just paid a dividend of $1.53. The dividend is expected to grow at 23.82% for three years and then grow at 3.13% forever. What is the value of the stock?
Submit
Answer format: Currency: Round to: 2 decimal places.
#2
The risk-free rate is 2.24% and the market risk premium is 6.81%. A stock with a of 1.74 just paid a dividend of $2.55. The dividend is expected to grow at 22.70% for five years and then grow at 3.13% forever. What is the value of the stock?
Submit
Answer format: Currency: Round to: 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started