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Need some help please 5. Stock H has just paid a dividend of $4.40 per share, and it is expected to grow payments by 2.3%
Need some help please
5. Stock H has just paid a dividend of $4.40 per share, and it is expected to grow payments by 2.3% perpetually. The Beta for Stock H is 1.6. The risk-free rate is 4% and the expected return on the market is 9%. a. Calculate the cost of equity for Stock H b. Calculate the intrinsic value of Stock H c. Calculate the intrinsic value of Stock H one year from today d. If the current price of Stock H is $45.00, calculate the expected alpha of Stock H (don't forget to include the dividend payment when calculating one-year returns) Step by Step Solution
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