Question
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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