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7 8 At the beginning of 2012, Google (GOOG) was priced at $580.71. Google's beta is 1.15 and the risk free rate at the time
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At the beginning of 2012, Google (GOOG) was priced at $580.71. Google's beta is 1.15 and the risk free rate at the time was 0.17% with a market portfolio risk premium of 6%. Google's price at the beginning of 2013 was $758.94. Use this information to answer the question. What was the required return for Google in 2012? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) A stock is priced today at $12.58. Analysts have a consensus view that the stock will be valued at $15.14 next year. The stock will not pay a dividend in the coming year. After a little research, you know that the stock has a beta of 1.11. The risk free rate in the economy is 5.00%, while the market risk premium is 7.00%. If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY? Submit Answer format: Currency: Round to: 2 decimal placesStep by Step Solution
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