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You are considering a stock A that pays a dividend of $ The beta coefficient of A is 1.3. The risk free return is 6%,
- You are considering a stock A that pays a dividend of $ The beta coefficient of A is 1.3. The risk free return is 6%, while the market average return is 13%.
- What is the required return for Stock A?
- If A is selling for $10 a share, is it a good buy if you expect earnings and dividends to grow at 6%?
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
