Question
A share currently sells for $14 a share. Its dividend is growing at a constant rate, and its dividend yield is 7 percent. The required
A share currently sells for $14 a share. Its dividend is growing at a constant rate, and its dividend yield is 7 percent. The required rate of return on the companys share is expected to remain constant at 14 percent per year. What is the expected share price (to the nearest dollar) five years from now?
Group of answer choices
$24
$29
$20
$37
BF Ltd has just paid a dividend of $3 per share. If the dividends are expected to grow at a constant rate of 4% per year indefinitely, what will be the share price (to the nearest dollar) in 4 years- time, if investors require a return of 6%?
Group of answer choices
$182
$189
$135
$156
Currently, your portfolio consists of $3,000 invested in share A with a beta of 0.7 and $4,000 in share B with a beta of 0.5. You have another $12,000 to invest and want to divide it between share C with a beta of 1.3 and a risk-free asset. You want your portfolio beta to be 0.9. How much (to the nearest dollar) should you invest in the risk free asset?
Group of answer choices
$10,000
$ 2,000
$8,800
$3,000
Consider the following information about a share portfolio :
State of Economy | Probability of State of Economy | Portfolio Return if the State Occurs | |
Boom | 0.6 | 15% | |
Bust | 0.4 | 4% |
What is the portfolio risk ?
2.9%
4.62%
3.27%
5.39%
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