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Kenneth Has one share of stock and one bond. The total value of the two securities is $1,042.40. The bond has a YTM of 12.60%,
Kenneth Has one share of stock and one bond. The total value of the two securities is $1,042.40. The bond has a YTM of 12.60%, a coupon rate of 8.41%, and face value of $1,000; pays semi annual coupons with the next one expected in 6 months; and matures in 3 years. The stock pays dividends that are expected to grow by 4.53% per year forever. The next dividend is expected to be $12.20 and paid in one year. What is the expected return for the stock?
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