Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Microsoft Corp ( MSFT ) stock has its closing price at $ 4 0 9 . 7 2 ( 1 / 2 9 / 2

Microsoft Corp (MSFT) stock has its closing price at $409.72(1/29/2024). It currently (2024) pays $0.75 per share quarterly dividend (the dividend was $0.36 per share quarterly in 2016(8 years ago).
Part A:
Assuming constant growth, what is the growth rate on the MSFT stock dividend?
Group of answer choices
12.70%
7.64%
None of them
9.61%
4.63%
Part B:
For the past 5 years, the NASDAQ index went from 6,837.25(1/30/2019) to 17,706.00(1/29/2024). Assume it represents the expected return for the market portfolio, what is the expected return for the market portfolio?
Group of answer choices
15.94%
9.28%
None of them
7.17%
20.96%
Part C:
Currently, the beta for MSFT stock is 0.88, and the yield on 6-month T-bill is 5.19%. What is the required return for MSFT stock based on CAPM?
Group of answer choices
7.02%
13.51%
19.07%
None of them
10.39%
Part D:
Based the current closing price of MSFT stock on 1/29/2024, what is the yield of MSFT stock?
Group of answer choices
12.06%
None of them
8.69%
10.41%
7.35%
Part E:
Is MSFT stock over-priced or underpriced?
Group of answer choices
overpriced
not enough information
underpriced
correctly priced

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions