Question
1. The risk-free rate is 1.67% and the market risk premium is 6.47%. A stock with a of 1.32 just paid a dividend of $1.96.
1. The risk-free rate is 1.67% and the market risk premium is 6.47%. A stock with a of 1.32 just paid a dividend of $1.96. The dividend is expected to grow at 20.60% for five years and then grow at 4.60% forever. What is the value of the stock?
2. A stock has an expected return of 13.00%. The risk-free rate is 3.91% and the market risk premium is 7.36%. What is the of the stock?
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Better Money
Authors: Lawrence H. White
1st Edition
1009327453, 978-1009327459
