Question
L-S Mining, Inc. pays an annual dividend of $16.50 per share, which is expected to remain constant for the foreseeable future. What is the value
L-S Mining, Inc. pays an annual dividend of $16.50 per share, which is expected to remain constant for the foreseeable future. What is the value of L-S Mining's stock to an investor who requires a 22% percent rate of return?
$87
$120
$25.92
$75
Johnson & Johnson Company is expected to pay a dividend of $8 per share at the end of year UD^) and the dividends are expected to grow at a constant rate of 10% forever. If the current price of the stock is $64 per share, calculate the expected return or the cost of equity capital for the firm. O 12.50% O 13.75% 22.50% o 23.75%
Olivia currently has all of her wealth in Treasury bills. She is considering investing 65% of her funds in Facebook Inc, whose beta is 1.80, with the remainder left in Treasury bills. Facebook has an expected return of 18% and Treasury bills have an expected return of 3%. What are Olivia's portfolio beta and portfolio expected return? ( ) Portfolio beta = 1.52, and Portfolio expected return = 12.75%. Portfolio beta = 1.52, and Portfolio expected return = 10.50%.
( ) Portfolio beta = 1.17, and Portfolio expected return = 10.50%.
Portfolio beta = 1.17, and Portfolio expected return = 12.75%.
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