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a detailed answer on all questions would be greatly appreciated!! 6. If a stock has a beta of 1.1 and last paid a dividend of
a detailed answer on all questions would be greatly appreciated!!
6. If a stock has a beta of 1.1 and last paid a dividend of $2.00 (D.), and if dividends are expected to grow at a constant rate of 6 percent per year, and if the risk-free rate is 4 percent and the market portfolio rate is 12 percent, then answer the following: a) What is the required rate of return on this stock? (2 pts) b) What is the current stock price? (2 pts) 7. If your WACC is 10.1%, what does a positive NPV of $150,567 mean and why should you accept the project? (3 pts) Step by Step Solution
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