Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nestle is expected to pay at the end of the year a DPS of 2.42 which expect to continue to grow at a constant growth

Nestle is expected to pay at the end of the year a DPS of 2.42 which expect to continue to grow at a constant growth rate of 1.5%. The risk-free rate is 0.75% and the expected return on the market is 6.75%. The current price of the stock today is 117$. If we use a constant growth approach and CAPM approach for Ke, please find the implied BETA of the stock (Nestle). That this Beta make sense with the sector? How would you categorize the sector? Industry stage? Key drivers and risks of the sector?

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

The Private Equity Toolkit A Step By Step Guide To Getting Deals Done From Sourcing To Exit

Authors: Tamara Sakovska

1st Edition

1119697107, 978-1119697107

More Books

Students also viewed these Finance questions

Question

18. What is an e-portfolio and what are its advantages?

Answered: 1 week ago

Question

What is the role of the Joint Commission in health care?

Answered: 1 week ago