Rate of return=(D1/Current price)+Growth rate
=(0.75/35)+0.08
which is equal to
=10.14%(Approx).
10% Question 6 5 pts What is the return of a stock that trades at $35,...
Question 5 5 pts If D = $2.00, g = 6%, and Po = $8, what is the stock's expected dividend yield? 5% 7% 13% 25% 10% Question 6 What is the return of a stock that trades at $35, will pay a $0.75 dividend at the end of the year, and grows at a rate of 8%? 5 pts 9.62%
What is the return of a stock that trades $35, will pay a $0.75 dividend at the end of the year, and grows at a rate of 12%? - 14.14% - 15.15% -12.12% -13.13% -11.11%
Question 7 5 pts The beta coefficient is a measure of a stock's risk. default market firm-specific total idiosyncratic Question 8 5 pts Swanson Company's long-run constant dividend growth is expected to be 10%. If the required return (rs) for Swanson is 15%, and the most recent dividend paid (D.) was $3.00, what is the most likely stock price one year from now? $88.50 $95.20
EVALUATING RISK AND RETURN Stock X has a 10% expected return, a beta coefficienta 0.9. and a 35.0 standard deviation of expected returns. Stock Y has a 12.5% expected return a beta coefficient of 1.2, and a 25% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. al Calculate each stock's coefficient of variation. Which stock is riskier for a diversified investor? Calculate each stock's required rate of return. d. On the basis of the...
Question 22 4 pts A firm's stock has a required return of 10%. The stock's dividend yield is 6%. What is the dividend the form is expected to pay in one year if the current stock price is $40? $3.60 $3.20 $2.40 $2.80 $2.00 4 pts
these SUCI 8-19 KAND RETURN Stock X has a 10% expected return, a beta coefficient of EVALUATING 0.9. and a 35% standard deviation of expected returns. Stock Y has a 12.5% expected return a beta coefficient of 1.2, and a 25% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. a. Calculate each stock's coefficient of variation. b. Which stock is riskier for a diversified investor? c. Calculate each stock's required rate of return. d....
5. Stock X has a 10% expected return, a Beta coefficient of .9, and a 35% standard deviation of expected return. Stock Y has a 12.5% expected return, a bet coefficient of 2, and a 25% standard deviation. The risk free rate is 2% and the market risk premium is 5% Calculate each stock’s coefficient of variation. Which stock is riskier? Calculate each stock’s required rate of return. Calculate the required rate of return of a portfolio that has $7,500...
DQuestion 13 5 pts Phoenix Solar is expected to pay a dividend of $3.60 in the upcoming year, and their stock is trading in the market today at $60 per share. Dividends are expected to grow at the rate of 7.2% per year. If the risk free rate of return is 4% and the expected return on the market portfolio is 12%, what is the stock's beta? | Your answer should be between 0.34 and 2.12, rounded to 2 decimal...
Question 1 1 pts Bayside Corporation has an issue of preferred stock outstanding that has an 9.4% dividend rate on a par value of $75. The stock's market price is $50 and investors require a 12.5% rate of return on this stock. What is the intrinsic value of the preferred stock? $99.73 $37.60 $56.40 $75.00 $50.40 Question 2 1 pts Hamilton Company common stock is currently selling for $60 per share. The stock will pay a dividend of $4.35 next...
QUESTION 4 Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D 1 = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is 25%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from reinvested earnings? a....