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2. The following table shows information of individual three stocks Stock Beta Current marketExpected marketExpected dividend year from per share one year from now S0
2. The following table shows information of individual three stocks Stock Beta Current marketExpected marketExpected dividend year from per share one year from now S0 $3.5 $4.15 price price one Tesla Walmart Boeing 0.9 0.85 1.8 S350 $97 S346 now $390 $110 $390 The risk-free rate is 5% and the expected rate of return of the S&P 500 index is 15%. a) b) c) For each stock, calculate dividend yield, capital gains yield, and total return For each stock, using the dividend discount model, calculate the intrinsic value Based on intrinsic values calculated above, find out which stock(s) should be "buy." Explain
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