Question
Based on the following data for AAA stock, what is the implied market risk premium? Dividend just paid, D 0 =$4 10-year Treasury bond yield=6%
Based on the following data for AAA stock, what is the implied market risk premium?
Dividend just paid, D0 =$4
10-year Treasury bond yield=6%
Beta for the stock=1.5
Current market price, P0=$125.71
Constant dividend growth rate=10%
Assume that the stock is priced in equilibrium.
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
134137043, 134137049, 978-0131531130
