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Various Return Based Question Part A : You purchased a stock a year ago for $480 per share and sold it today for $520 immediately

Various Return Based Question

Part A : You purchased a stock a year ago for $480 per share and sold it today for $520 immediately after receiving a $12 per share dividend. What is your holding period return?

Part B: What is the required return on a stock with a beta of 9% and the 10-year treasury currently has a yield to maturity of 6%?

Part C: A firm just declared dividends of $10 per share. Dividends are projected to grow at a 3% annual rate into the foreseeable future. Treasuries currently pay 2%, the market risk premium is 4%, and the firms beta is 2.5. What is the intrinsic value of a share of the firms stock?

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