Question
im taking my final rn please help me out 1) A stock has an expected return of 15 percent, its beta is 1.4, and the
im taking my final rn please help me out
1) A stock has an expected return of 15 percent, its beta is 1.4, and the expected return on the market is 12 percent. What must the risk-free rate be?(Do not round your intermediate calculations.)
rev: 09_20_2012
4.27%
-1.80%
4.72%
4.68%
4.50%
2) A stock had returns of 6 percent, -22 percent, 18percent, 12 percent, and -2 percent over the past five years. What is the standard deviation of these returns?
15.52 percent
10.21 percent
13.49 percent
18.74 percent
11.68 percent
3) The Absolute Zero Co. just issued a dividend of $2.85 per share on its common stock. The company is expected to maintain a constant 5.9 percent growth rate in its dividends indefinitely.
If the stock sells for $57 a share, what is the company's cost of equity?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal pl0 aces, e.g., 32.16.)
4
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