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You are considering purchasing some shares of West Wing Inc. ( WW ) to add to your portfolio. The stock is currently quoted at $
You are considering purchasing some shares of West Wing Inc. WW to add to your portfolio.
The stock is currently quoted at $ per share in the market. Your research has provided you
with the following information:
The stock of recently paid a dividend of $ per share.
Dividends are expected to grow at a rate of per year, forever.
Based on past returns, the standard deviation of WW is
The stock has a correlation of with returns to the overall market.
The S&PTSX Composite Index has a standard deviation of
Historically, the market has returned more than Tbills in an average year.
The current yield on Tbills is
Based on your analysis, should you purchase shares of WW Show your work.
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