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1 A stock has an expected return of 14.00%. The risk-free rate is 3.62% and the...

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A stock has an expected return of 14.00%. The risk-free rate is 3.62% and the market risk premium is 5.48%. What is the β of the stock?


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The risk-free rate is 1.25% and the market risk premium is 6.59%. A stock with a β of 1.11 just paid a dividend of $1.21. The dividend is expected to grow at 23.06% for three years and then grow at 4.27% forever. What is the value of the stock?


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The risk-free rate is 1.30% and the market risk premium is 9.13%. A stock with a β of 1.23 just paid a dividend of $2.17. The dividend is expected to grow at 20.39% for five years and then grow at 3.41% forever. What is the value of the stock?


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Answer #1

1)

(Rs-Rf) Rp Stocks beta Here, Risk free rate of return (Rf) 3.62% Market risk premium (Rp) Required rate of return (Rs) 5.48%

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