Question
1a. A stock just paid a dividend of $1.76. The dividend is expected to grow at 25.49% for two years and then grow at 3.16%
1a. A stock just paid a dividend of $1.76. The dividend is expected to grow at 25.49% for two years and then grow at 3.16% thereafter. The required return on the stock is 12.67%. What is the value of the stock?
Answer format: Currency: Round to: 2 decimal places.
1b. The risk-free rate is 3.48% and the expected return on the market 9.65%. A stock with a of 1.16 will have an expected return of ____%.
Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
1c. A stock has an expected return of 13.00%. The risk-free rate is 2.44% and the market risk premium is 7.47%. What is the of the stock?
Answer format: Number: Round to: 2 decimal places.
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