Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Remaining time: 45 minutes, 38 seconds Question Completion Status: This is a problem that has FIVE questions. Therefore, please choose FIVE answers (one choice for
Remaining time: 45 minutes, 38 seconds Question Completion Status: This is a problem that has FIVE questions. Therefore, please choose FIVE answers (one choice for each question). Following table is the data of past dividend payments. dividend (in millions) 2012$1.00 2013$1.50 2014$2.00 2015$2.35 2016$3.15 2017$4.00 2018$4,65 201955.25 2020$5.96 Using the past dividend data, you will forecast the future growth rate. The most recent dividend paid by New Technologies was an annual dividend of $5.96 million in total and there are 20 million shares outstanding. Assume T-bill rate is 3%, S&P500 market return is 7%, beta of New Technologies is 0.88. #1. What is the appropriate discount rate (required rate of return)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668f937da0c34_437668f937d0a79e.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started