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Please show all work and explain. 3. A share of stock sells today for $52.50. The beta of the stock is 1.18. The expected return
Please show all work and explain.
3. A share of stock sells today for $52.50. The beta of the stock is 1.18. The expected return on the overall market is 10.6% and the risk free rate is 2.5%, What is the overall expected return of the stock? If there is to be a dividend of $1.68 at the end of the year, what should be the price of the stock at the end of the year? If the price of the stock is expected to be $56.10, how much does the dividend change to meet the overall return expectations?
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