Question
1.A stock is priced at $15.13 today, and analysts have a view that the stock will trade at $17.83 in one year. The stock will
1.A stock is priced at $15.13 today, and analysts have a view that the stock will trade at $17.83 in one year. The stock will not pay a dividend. The current risk free rate in the economy is 4.00% while the market portfolio risk premium is 6.00%. If the stock is fairly priced, what is the implied beta for the stock?
2.A stock has just paid a dividend of $2.01 this morning. Analysts expect dividends to grow into the foreseeable future at 4.00% annually. The current risk free rate in the economy is 3.00%, while the market portfolio risk premium is 7.00%. If the stock has a Beta of 1.04, what is a reasonable estimate of the stocks intrinsic value?
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Investing For Women Smart Strategies To Start Investing Now With Confidence Low Risk And Minimal Effort
Authors: Mike Hartley ,Hannah Rosenstein
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