Question
A stock is expected to pay a dividend of $1.00 each year for the next 3 years, after that the dividend is expected to grow
A stock is expected to pay a dividend of $1.00 each year for the next 3 years, after that the dividend is expected to grow at a constant rate of 7% per year forever. The stock s required rate of return is 11%. What is intrinsic value of the stock today
Assume that the risk-free rate is 2% and the required return of the market is 8%. What is the required return of a stock with a beta of 1.25?
A treasury bond that matures in 10 years has a yield of 1.3%. A 10-year corporate bond has a yield of 7.6% and a liquidity premium of 1.6%. What is the default risk premium of the corporate bond? |
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