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Q14) An analyst gathered the following information for a stock and market parameters: stock beta =1.470; expected return on the Market =11.30%; expected return on
Q14) An analyst gathered the following information for a stock and market parameters: stock beta =1.470; expected return on the Market =11.30%; expected return on T-bills =1.50%; current stock Price =$9.04; expected stock price in one year =$8.73; expected dividend payment next year =$1.86. Calculate the a) Required return for this stock (1.25 points): b) Expected return for this stock ( 1.25 points)
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