Question
You own stock in Ford Blue Inc. The annual risk-free rate of interest is .0470. The annual expected return on the market is .1170. The
You own stock in Ford Blue Inc. The annual risk-free rate of interest is .0470. The annual expected return on the market is .1170. The beta for Ford Blues stock is .4. You expect dividends to grow at a rate of 3.61% on an annual basis. Please round returns and growth rates to four places in your calculations. Q 1 Question 1 (3 points) The annual required return on the stock is Select one: .0053 .0313 .0677 .0750 .0831 .1024 .1450 Q 2 Question 2 (3 points) The quarterly required return on the stock is Select one: .0013 .0077 .0182 .0202 .0244 .3354 .3762 Q 3 Question 3 (3 points) The quarterly growth rate in dividends is Select one: .0089 .0119 .0241 .0629 .0866 .1123 .1524
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