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Risk free rate = 0,05 Expected return on stock A = 0,0950 Standard deviation of the return on stock A = 0,3 Beta-value of stock

Risk free rate = 0,05

Expected return on stock A = 0,0950

Standard deviation of the return on stock A = 0,3

Beta-value of stock A = 1,5

Yearly dividend paid at the end of 2018 = 12

Expected dividend growth = 0,02

Expected return on the market portfolio = 0,08

Standard deviation of the return on the market portfolio = 0,14

Beta-value of the market portfolio = 1

Question 1: what is the current market price for one share of stock A on December 31, 2018 after the dividend has been paid?

Question 2: What is the market price of one share of stock A on December 31, 2019 just BEFORE the dividend is paid?

Question 3: What is the percentage return on December 31, 2019 AFTER the dividend has been paid if you bought one share of stock A on December 31, 2018 and you sell it now?

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