Question
Middlefield Motors stock is expected to be priced at 63.4 dollars in 1 year. It is expected to pay its next dividend, which is expected
Middlefield Motors stock is expected to be priced at 63.4 dollars in 1 year. It is expected to pay its next dividend, which is expected to be 2.16 dollars, in 1 year. The stock has a beta of 1.52. The market has an expected return of 12.27 percent, the risk-free rate is 6.63 percent, and the inflation rate is 1.42 percent. What is the current price of Middlefield Motors stock?
Fairfax Pizza stock is currently priced at 72.47 dollars per share and is expected to pay its next dividend, which is expected to be 2.28 dollars, in 1 year. The stock has a beta of 1.54. The market has an expected return of 12.27 percent, the risk-free rate is 4.6 percent, and the inflation rate is 1.37 percent. What is the stock price of Fairfax Pizza expected to be in 1 year?
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