Question
Risk Metrics Company is expected to pay a dividend of $3.50 in the coming year. Dividends are expected to grow at a rate of 10%
Risk Metrics Company is expected to pay a dividend of $3.50 in the coming year. Dividends are
expected to grow at a rate of 10% per year. The risk-free rate of return is 5% and the expected return on
the market portfolio is 13%. The stock is trading in the market today at a price of $90.00.What is the market capitalization rate for Risk Metrics?
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
