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If the current share price Bluebonnet Electric's preferred stock is $33.7, what will be its required rate of return if the stock pays dividend of
If the current share price Bluebonnet Electric's preferred stock is $33.7, what will be its required rate of return if the stock pays dividend of $9.5 per share? Report the return in percentage and keep two digits after the decimal point. (4 pts) Answer: Assume that the risk-free rate of return (Rt) is 4% and return on the market portfolio is 7.7 percent. Compute the required rate of return on a security that has a beta of 1.5. Keep two digits after the decimal point and express in percentage. (4 pts)
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