Microsoft Corp (MSFT) stock has its closing price at $229.25 (10/10/22). It currently (2022) pays $0.62 per share quarterly dividend (the dividend was $0.36 per share quarterly in 2016 (6 years ago).

a)Assuming constant growth, what is the growth rate on the MSFT stock dividend?

1.86%

4.63%

9.24%

7.64%

None of them

b) For the past 5 years, the S&P500 index went from 2555.24 (10/11/17) to 3612.39 (10/10/22). Assume it represents the expected return for the market portfolio, what is the expected return for the market portfolio?

41.37%

5.94%

8.27%

7.17%

None of them

c) Currently, the beta for MSFT stock is 0.96, and the yield on 3-month T-bill is 3.51%. What is the required return for MSFT stock based on CAPM?

7.02%

None of them

3.51%

10.39%

d) Based the current closing price of MSFT stock on 10/10/22, what is the yield of MSFT stock?12.06%

10.99%

8.69%

None of them

7.35%

e) Is MSFT stock over-priced or underpriced?

correctly priced

underpriced

not enough information

overpriced