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2. The following table shows information of individual three stocks Stock Current market Expected market Expected dividend price price one year from pe r share

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2. The following table shows information of individual three stocks Stock Current market Expected market Expected dividend price price one year from pe r share one year from now Tesla 0,9 Walmart0.85 Boein S350 S97 S346 now S390 $110 $390 S3.5 $4.15 The risk-free rate is 5% and the expected rate of return of the S&P 500 index is 15% a) For each stock, calculate dividend yield, capital gains yield, and total return (12 Points) the intrinsic value (10 Points) stock(s) should be "buy." Explain. (3 Points) b) For each stock, using the dividend discount model, calculate c) Based on intrinsic values calculated above, find out which

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