You find a stock with a beta of 1.3 that just paid a dividend of $1.45 that is expected to grow at 5%. If the risk-free rate is 3% and the market risk premium is 8%, what should be the price of the stock in four years?
A. $20.98
B. $22.03
C. $18.13
D. $41.12
Required rate=risk free rate+Beta*market risk premium
=3+(1.3*8)=13.4%
Current price=D1/(Required return-Growth rate)
=(1.45*1.05)/(0.134-0.05)
=$18.125
P4=Current price*(1+Growth rate)^4
=18.125*(1.05)^4
=$22.03(Approx).
You find a stock with a beta of 1.3 that just paid a dividend of $1.45...
You find a stock with a beta of 1.3 that just paid a dividend of $1.45 that is expected to grow at 5%. If the risk-free rate is 3% and the market risk premium is 8%, what should be the price of the stock in four years? A. $22.03 B. $41.12 C. $20.98 D. $18.13
You find a stock with a beta of 1.3 that just paid a dividend of $2.30 that is expected to grow at 5.5 % per year. If the risk-free rate is 296 and the market risk premium is 7 %, what will be the price of the stock in seven years? A. $63.03 B. $117.66 C. $59.75 D. $43.33
A stock with a beta of 1.3 just paid a dividend of $0.75 and is priced at $42. If the risk-free rate is 3% and the market risk premium is 6%, what is the expected growth rate for the stock? A. 5.02% B. 8.86% C. 12.68% D. 9.01%
A stock with a beta of 1.2 just paid a dividend of $0.75 that is expected to grow at 7%. If the risk-free rate is 3% and the market risk premium is 5.5%, what should be the price of the stock in five years? A. $28.85 B. $43.29 C. $30.87 D. $40.46
A stock with a beta of 1.3 just paid a dividend of $1.10 and is priced at $35. If the risk-free rate is 2% and the market risk premium is 6%, what is the expected growth rate for the stock? A. 4.08% B. 3,93% O G. 6.6% OD. 6.45%
Bob's Burgers has a beta of 1.2 and just paid a dividend of $1.50 that is expected to grow at 59%. If the risk-free rate is 3% and the market risk premium is 8 %, what should be the price of the stock? O A. $20.72 B. $26.45 C. $25.19 O D. $19.74
Dunder Mifflin has a beta of 1.8 and just paid a dividend of $1.50 that is expected to grow at 7% per year for the foreseeable future. If the risk-free rate is 3% and the market risk premium is 6%, what should be the price of their stock in seven years? A. $26.18 B. $37.90 OC. $35.42 O D. $23.60
Paunch Bruger has a beta of 0.8 and just paid a dividend of $1.25 that is expected to grow at 4%. If the risk-free rate is 3% and the market risk premium is 6%, what should be the price of the stock?
Paunch Burger has a beta of 1.2 and just paid a dividend of $2.30 that is expected to grow at 3.2%. If the risk-free rate is 3% and the market risk premium is 6%, what should be the price of the stock? A. $69.81 B. $39.69 C. $32.86 D. $33.91
A stock with a beta of 0.6 just paid a dividend of $0.75 and is price at $42. If the risk free rate is 3% and the market risk premium is 6%, what is the expected growth rate for the stock? A. 1.37% B.4.73% C.4.81% D. 1.55%