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please show work! 1. Assume the company has a beta value of 0.85. Find the discount rate using the CAPM model with a treasury bill
please show work!
1. Assume the company has a beta value of 0.85. Find the discount rate using the CAPM model with a treasury bill rate of 4% and a historical market risk premium of 7%.
2. Find the sustainable growth rate using the retention ratio calculated based on data in 2020.
3. Estimate the stock price in 2021 using the dividen discount model.
4. Estimate the stock price in 2021 using the residual income model
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