Question
4. As a preferred shareholder in the Bradbury Breathe Easy Corporation, you are entitled to an annual dividend of $5. The market portfolio return you
4. As a preferred shareholder in the Bradbury Breathe Easy Corporation, you are entitled to an annual dividend of $5. The market portfolio return you require is 15%. What is the fair value of the stock based upon the figures?
5. Six-month treasuries are priced at 0.30% currently. Youre analyzing a stock that has a Beta of 1.50, and your required market portfolio return is 9.00%. What type of return does this particular investment need to generate in order for you to consider putting it in your investment portfolio?
6. Jackson Inc. is expected to pay a $2.25 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock is 14%. What is the stocks current value per share?
7. An investment has a stated rate of 6%. However, you notice it pays interest monthly. What is the effective annual rate?
please do accurate and explain a bit because there is no chances of doing wrong
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