Question
1.Ac Motors has a share price of $23.3 today. If AC Motors is expect to pay a dividend of $2 this year, and its stock
1.Ac Motors has a share price of $23.3 today. If AC Motors is expect to pay a dividend of $2 this year, and its stock price is expected to grow to $26.75 at the end of the year, then Nielson's dividend yield is ______%?
2.Suppose the risk-free return is 3.5% and the market portfolio has an expected return of 12%, and a volatility of 15.6%. Merck & Co. stock has a 20.7% volatility and a correlation with the market of 0.4 . Under the CAPM assumptions , Merck & Co. stock's expected return is ______%?
3.Wyatt Oil presently pays no dividend. You anticipate Wyatt Oil will start to pay an annual dividend of $1.56 per share two years from today and you expect dividend to grow by 4% per year thereafter. If Wyatt Oil's equity cost of capital is 12%, then what is the value of a share of Wyatt Oil today?
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