Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LULU yraucu Due: Thursday, March 24, 2022, at 11:59:59 PM EDT View List Unanswered y Answered #1 A stock just paid a dividend of $2.72.

image text in transcribed
LULU yraucu Due: Thursday, March 24, 2022, at 11:59:59 PM EDT View List Unanswered y Answered #1 A stock just paid a dividend of $2.72. The dividend is expected to grow at 21.49% for two years and then grow at 3.32% thereafter. The required return on the stock is 11.01%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. 12 The risk-free rate is 2.10% and the market risk premium is 4.92%. A stock with a B of 0.82 will have an expected return of %. Submit Answer format: Percentage Round to: 2 decimal places (Example: 924%, % sign required. WW accept decimal format rounded to 4 decimal places (ex: 0.09241) 13 The risk-fron rate is 2.74% and the expected return on the market 9.97% A stock with a B of 0.98 will have an expected return of_% Submit Answer format: Porcentage Round to: 2 decimal places (Example: 9.24%, % sign required. Ww accept decimal format rounded to 4 decimal places (ex: 0.0924) 14 A stock has an expected return of 17.00%. The risk-free rate is 3.31% and the market risk premium is 7.49%. What is the of the stock? Submit Answer format: Number Round to decimal naces

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions