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5. Consider the Alcoa shares trading at $76.50. Using the standard PS valuation model, what is the market's implied required rate of return (the IRR)

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5. Consider the Alcoa shares trading at $76.50. Using the standard PS valuation model, what is the market's implied required rate of return (the IRR) on these shares? If your RRR is 5.5%, what is your investment recommendation? NYSE stock price quotes Name Div Yield PE Close PIL 1.24 1.5 12 83.65 RE 1.28 3.5 9 36.23 ROK .66 2.3 16 29.27 Alcoa PF 3.75 4.9 76.50 CinBB 3.38 4.5 75.50 5. Consider the Alcoa shares trading at $76.50. Using the standard PS valuation model, what is the market's implied required rate of return (the IRR) on these shares? If your RRR is 5.5%, what is your investment recommendation? NYSE stock price quotes Name Div Yield PE Close PIL 1.24 1.5 12 83.65 RE 1.28 3.5 9 36.23 ROK .66 2.3 16 29.27 Alcoa PF 3.75 4.9 76.50 CinBB 3.38 4.5 75.50

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