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10. What is the value of a stock that has an expected dividend per share of $4, a beta of 1.3 and constant growth of
10. What is the value of a stock that has an expected dividend per share of $4, a beta of 1.3 and constant growth of 5%? The return on the S&P 500 is 10% and the return on US T-Bills is 4%. A. $56.02 B. $57.06 C. $54.25 D. $57.53 E. $58.82 11. An investment has a current price of $88 and has paid a $10 dividend over the holding period. If the investment was purchased for $82 and inflation has been 3%, what is the real return for the investment? A. 11.49% C. 14.63% E. 19.5% B. 11.30% D. 16.0%
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