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Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide

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Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock. Here's what you find. This year, Oasis paid its stockholders an annual dividend of 53.72 a share, but because of its high rate of growth in earings, its dividends are expected to grow at the rate of 14% a year for the next 4 years and then to level out at 12% a year so far youve comed that the stock has a bata of 10th risk-free rate of return is 6%, and the expected return on the market in 12%. Using the CAPM to find the required rate of return, put a value on this stock Using the CAPM, the required rate of retum on the investment is % (Round to two decimal places) The value of the company's stock in $(Round to the nearest cent.) Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock. Here's what you find. This year, Oasis paid its stockholders an annual dividend of 53.72 a share, but because of its high rate of growth in earings, its dividends are expected to grow at the rate of 14% a year for the next 4 years and then to level out at 12% a year so far youve comed that the stock has a bata of 10th risk-free rate of return is 6%, and the expected return on the market in 12%. Using the CAPM to find the required rate of return, put a value on this stock Using the CAPM, the required rate of retum on the investment is % (Round to two decimal places) The value of the company's stock in $(Round to the nearest cent.)

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