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Assume that the Company XVZ has a Beta of 1.1, and given the expected return on the market portfolio of 12% and a 3% risk
Assume that the Company XVZ has a Beta of 1.1, and given the expected return on the market portfolio of 12% and a 3% risk free rate, what is your expected rate of return on this stock? 1296 13.4% 12.9% 11.9% Assume that a Company XVZ sells a bond, with a 4% coupon rate, with expiration in 25 years, what is the YTM for this bond is the bond price is quoted at 105% of the par. The bond makes a semi-annual payment. 3.69% 1.85% 4% None of the above Assume that Company XYZ just paid the dividend of $1 on its' common stock (trailing over last 12 months). The dividend is expected to grow constantly at 8% in a foreseeable future. Given the required rate of return of 12%, what is the intrinsic stock price value? $27 $25 $23 $21 Assume that the stock market price is currently $23. What is the dividend yield, given the constant dividend growth assumption of 8967, and the company just paid $1 in dividends? 12.7% 4.796 8% 1296
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