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Question 29 4pt Suppose Casper Ltd, a publicly listed corporation, currently pay no dividends. Based on current projections and management forecasts, investors are expecting the
Question 29 4pt Suppose Casper Ltd, a publicly listed corporation, currently pay no dividends. Based on current projections and management forecasts, investors are expecting the company to pay its first ever cash dividend of $5.46 in exactly two years from today. Each subsequent dividend is expected to grow by 2% per annum forever. If the required return on equity is 12%, what should be the stock price of Casper Ltd today? O $54.60 O $36.49 O $48.75 O $43.53 Question 30 4 pt Suppose you are considering the purchase of a stock that is currently priced to offer a dividend yield of 1.2%. This dividend yield is based on an expected dividend payment of $1.47 that is to be paid in exactly one year. If you think the stock price will rise to $140 per share in one year, at which time it will also pay the cash dividend of $1.47, what beta would it need to have for this expectation to be consistent with CAPM? Assume that the risk-free rate is 4% and the market risk premium is 7%. O 3.47 O 1.71 O 3.08 O 4.69 - Previous
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