44. ConEdison's earnings in the current fiscal year are $2 per share, its dividends are $1...

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44. ConEdisons earnings in the current fiscal year are $2 per share, its dividends are $1 per share, and its beta is 0.60. E

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Answer 1

Answer #1

Expected return = risk free rate + beta * market risk premium

= 3% + 0.6 * (8% - 3%)

= 6%

Price = dividend next year/(Required return - growth rate)

= 1 * 1.04/(0.06-0.04)

= 52

choose C)

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Answer 2

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44. ConEdison's earnings in the current fiscal year are $2 per share, its dividends are $1...

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44. ConEdison's earnings in the current fiscal year are $2 per share, its dividends are $1...

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44. ConEdison's earnings in the current fiscal year are $2 per share, its dividends are $1...

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