Suppose that Wal-Mart (WMT) to has a Beta of 1.1 and a volatility of 30% and...
Suppose that Wal-Mart (WMT) to has a Beta of 1.1 and a volatility of 30% and that Exxon Mobil (XOM) has a Beta of 0.9 and a volatility of 50%. Which stock has more systematic risk? Which stock has more total risk
One year from now, Indiana Publishing is expected to pay a $4.25 dividend on its common stock. After that time, the dividend is expected to grow by 6% per year forever. If the firm’s equity cost of capital is 13%, the price of a share of a share of its stock is should be closest to ________.
Homework Answers
1)
Beta is a systematic risk while volatility is a total risk
so Wal-Mart (WMT) has more systematic risk
and Exxon Mobil (XOM) has more total risk
2)
the price of a share of a share of its stock is should be closest to
=D1/(r-g)
=4.25/(13%-6%)
=60.71
the above will be the answer..
Add Answer to:
Suppose that Wal-Mart (WMT) to has a Beta of 1.1 and a
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1～10 Finance 313 - Handout #36B Financial Ratios for Amazon (AMZN) & Wal-Mart (WMT) AMZN 2017-12...
1～10
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please work all parts.
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1～10
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please work all parts.
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