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Cache Creek Manufacturing Company is expected to pay a dividend of $ 4 . 2 0 in the upcoming year. Dividends are expected to grow
Cache Creek Manufacturing Company is expected to pay a dividend of $ in the upcoming year. Dividends are expected to grow at the rate of per year. The riskfree rate of return is and the expected return on the market portfolio is Investors use the CAPM to compute the market capitalization rate on the stock and use the constantgrowth DDM to determine the intrinsic value of the stock. The stock is trading in the market today at $ Using the constantgrowth DDM and the CAPM, the beta of the stock is Round to decimal places.
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