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A stock is selling for $50 in the market. The companys beta is 1.2, the market risk premium (r M - r F ) is

A stock is selling for $50 in the market. The companys beta is 1.2, the market risk premium (rM - rF) is 5%, and the risk-free rate is 6%. The most recent dividend paid is D0 = $2.0 and dividends are expected to grow at a constant rate g. Whats the required rate of return by common shareholders?

5.0%

6.0%

11.0%

12.0%

Using the information from Question, whats the dividend growth rate g for this stock?7

6.22%

7.31%

7.69%

8.15%

Using the information from Question, calculate the stocks expected dividend yield.

4.31%

5.00%

6.22%

7.70%

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