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1.Assume the risk free rate is 2.2% and the beta for a particular firm is 1.8, current firm share price is $106 and the market
1.Assume the risk free rate is 2.2% and the beta for a particular firm is 1.8, current firm share price is $106 and the market risk premium is 5%.What is the required rate of return for this firm?
Please use 5 decimal places in your response
2.Find the value of a stock using the constant growth DDM, if the last dividend paid is $3 and the beta=1.2, market risk premium is 8%, risk free rate is 3.2% and the dividend growth rate is 2%?
Please use 5 decimal places in your response
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