Q13.
As per Constant Dividend Growth Model,
Stock Price = D1/(r - g)
60 = 3.60/(r - 0.072)
r = 13.20%
As per CAPM Model,
Required Rate = Rf + Beta(Rm - Rf)
0.1320 = 0.04 + Beta(0.12 - 0.04)
Beta = 1.15
Q14.
As per CAPM Model,
Required Rate = Rf + Beta(Rm - Rf)
Required Rate = 0.045 + 1.70(0.105 - 0.045)
Required Rate = 14.70%
As per Constant Dividend Growth Model,
Stock Price = D0(1 + g)/(r - g)
Stock Price = 1.35(1.065)/(0.1470 - 0.065)
Stock Price = $17.53
DQuestion 13 5 pts Phoenix Solar is expected to pay a dividend of $3.60 in the...
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