Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with questions 16-18. 13. what is the percent return? 14. FedEx expects to pay a dividend next year of $5.60 /share, which would

image text in transcribed

please help with questions 16-18.

13. what is the percent return? 14. FedEx expects to pay a dividend next year of $5.60 /share, which would be a growth rate of 10%. The required return is 20%. The value of a share of FedEx's common stock is 15. The risk-free rate is 6%, the market return is 12% annually. Hasbro has a beta of 1.3 expects to offer a constant dividend of $5.20/share. Hasbro is being sued for copying other products and the beta of the stock goes up to 1.6. The price of the stock now is: 16. A portfolio contains $1,000 in General Mills stock where beta = 1.5, $5,000 in Garmin stock where beta is 1.8, and $4,000 in Macy's stock with a beta of 0.9). What is the beta of this portfolio? I questions 17 and 18: McDonald's next dividend is expected to be $0.65 and the stock price is $45. McDonald's beta is 1.1 and is expected to grow at 10%. The market portfolio is 11% and the risk free rate is 4%. 17. What is the required return using CAPM? 18. What is the required return using the constant growth model? For questions 19 and 20: The CEO of Nordstrom expects to earn a 15% return next year because of its new flagship location in NYC. Focus DALL

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

Cash Confident An Entrepreneurs Guide To Creating A Profitable Business

Authors: Melissa Houston

1st Edition

1637586361, 978-1637586365

More Books

Students also viewed these Finance questions