The risk-free rate of return is 5%, the required rate of return on the market is 10%, and HighFlyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.50 and g = 4%, at what price should a share sell?

Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 4% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 12%. The stock has a beta of .75. What is the intrinsic value of the stock?

The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5.00. If the firm's plowback ratio is 60%, what will be its P/E ratio?

A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indefinitely. If the current value of the firms shares is $35, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)?

Firm A is high-risk, and Firm B is low-risk. Everything else equal, which firm would you expect to have a higher P/E ratio?

Tri-coat Paints has a current market value of $41 per share with earnings of $3.64. What is the present value of its growth opportunities (PVGO) if the required return is 9%?