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You have collected the following information about the market and a stock of interest: 3 US treasury bonds are yielding 1.80% 4 Rate of return
| You have collected the following information about the market and a stock of interest: | |||
| 3 | US treasury bonds are yielding | 1.80% | |
| 4 | Rate of return on a market portfolio of like stocks is | 11.40% | |
| 5 | The stock of interest has a beta of | 2.21 | |
| 6 | The market has a beta of | 1.00 | |
| 7 | The current dividend is | $3.98 | |
| 8 | The firm registers a constant growth rate of | 6.70% | |
| 9 | What is the fair market value of the stock based upon DDM and CAPM? | ||
| a. | Fair market value (Po) = $29.93 | |
| b. | Fair market value (Po) = $23.93 | |
| c. | Fair market value (Po) = $27.93 | |
| d. | Fair market value (Po) = $20.93 |
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
