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9. Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of

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9. Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of 1.0. The last dividend paid by PCN (Do) was $2 per share. What would be the stock value if the growth rate were 10%? Do you see the difference that the Beta can make on estimated stock value (look at answer for #8 and #9)? Choice: $50.00 Choice: $100.00 Choice: $110.00 Choice: $115.00

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