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Crazy Inc. just paid a dividend of S7. They will decrease the dividend by $1 per year until it reaches $3. At which point they
Crazy Inc. just paid a dividend of S7. They will decrease the dividend by $1 per year until it reaches $3. At which point they will maintain a plow back rate of 40% with an expected ROE of 20%. Currently, CAPM model indicates that Crazy's beta is 1.5 and the risk free rate is 5% and the market risk premium is 8%. Also assume that the required rate or return will drop by 0.5% six years from now and remain at the new value forever. Assuming you purchase the stock today and sell it in 1 year, calculate the following: CGY DY HPR Assuming you purchase the stock in 5 year and sell it one year later, calculate the following: CGY DY HPR Crazy Inc. just paid a dividend of S7. They will decrease the dividend by $1 per year until it reaches $3. At which point they will maintain a plow back rate of 40% with an expected ROE of 20%. Currently, CAPM model indicates that Crazy's beta is 1.5 and the risk free rate is 5% and the market risk premium is 8%. Also assume that the required rate or return will drop by 0.5% six years from now and remain at the new value forever. Assuming you purchase the stock today and sell it in 1 year, calculate the following: CGY DY HPR Assuming you purchase the stock in 5 year and sell it one year later, calculate the following: CGY DY HPR
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