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RRR 3. Assume you and some friends are analyzing a certain stock for your portfolio. You've each come up with different required rates of return.
RRR 3. Assume you and some friends are analyzing a certain stock for your portfolio. You've each come up with different required rates of return. [Investor | Required Rate of Return]; [Fred |.15]; [Leslie| .12]; [Elliot | .08]. Let's say Fred also thinks markets are efficient and this stock trades for $13. It also just paid a dividend of $1. Fred thinks the expected growth rate of dividends is 3%. The risk-free rate is 2%. Fred would pay $ for the stock (round to the nearest penny). QUESTION 7 RRR 4. Assume you and some friends are analyzing a certain stock for your portfolio. You've each come up with different required rates of return. [Investor | Required Rate of Return]; [Fred |.15]; [Leslie| .12]; [Elliot | .08]. Let's say Leslie also thinks markets are efficient and this stock trades for $13. Leslie expects this stock to pay a dividend 4 years from now of $2. Leslie thinks the expected growth rate of dividends is 3%. The risk-free rate is 2%. Leslie would pay $ for the stock (round to the nearest penny). QUESTION 8 RRR 5. Assume you and some friends are analyzing a certain stock for your portfolio. You've each come up with different required rates of return. [Investor | Required Rate of Return]; [Fred |.15]; [Leslie| .12]; [Elliot | .08]. Let's say Leslie also thinks markets are efficient and this stock trades for $13. Leslie expects this stock to pay a dividend 4 years from now of $2. Leslie thinks the expected growth rate of dividends is 3%. The risk-free rate is 2%. Leslie requires a risk premium of, to hold this stock (round to the nearest whole percent)
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