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a) If an investor wants to invest $100.000 in a stock portfolio. His choices are Stock A with an expected return of 11.5% and Stock
a) If an investor wants to invest $100.000 in a stock portfolio. His choices are Stock A with an expected return of 11.5% and Stock B with an expected return of 9.4%. If your goal is to create a portfolio with an expected return of 10.85%, how much money will you invest in Stock A? In Stock B? b) T & T Corporation issued a dividend of $2.08 per share on its common stock. The company paid dividends of $1.71, $1.82, $1.93, and $1.99 per share in the last four years. If the stock currently sells for $45, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends
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