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ht the You expect the price of lex stock to be $67 per share a year from now. its current market price is $55, and

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ht the You expect the price of lex stock to be $67 per share a year from now. its current market price is $55, and you expect it to pay a dividend one year from now of $3,15 per share. a. What are the stock's expected dividend yield, its rate of price appreciation (the capital gains yield), and the total holding period return? b. If the stock has a beta of 2.10, the risk free rate is 7% per year, and the expected rate of return on the market portfolio is 15% per year, what is the required rate of return on texto k? (4 marks) c. What is the intrinsic value of IBX stock? (4 marks) d. Based only of the intrinsic value, would you consider this stock a good investment? Explain (4 marks) BIS ht the You expect the price of lex stock to be $67 per share a year from now. its current market price is $55, and you expect it to pay a dividend one year from now of $3,15 per share. a. What are the stock's expected dividend yield, its rate of price appreciation (the capital gains yield), and the total holding period return? b. If the stock has a beta of 2.10, the risk free rate is 7% per year, and the expected rate of return on the market portfolio is 15% per year, what is the required rate of return on texto k? (4 marks) c. What is the intrinsic value of IBX stock? (4 marks) d. Based only of the intrinsic value, would you consider this stock a good investment? Explain (4 marks) BIS

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