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Category > Business & Finance Posted 31 May 2017 My Price 8.00

QUESTION#1: a share of a common stock

QUESTION#1: a share of a common stock has just paid a dividend of $3.00

the dividend is expected to grow 10% next year and 8% year after. before leveling off at an expected longrun rate of 5%. you require a 11% return on investments.

QUESTION: what is the terminal value? AND how much is the stock worth?

 

QUESTION#2: constructing a 2 stock portfolio

stock 1 has beta of 1.97 while wtock2 has beta of .76 .

current risk free rate is 3%. and you determine expected return on market to be 9%. your portfolio will consist of 40% of stock1 and 60% stock2.

QUESTION: what is required return for Stock1?

QUESTION what is req return for stock2?

QUESTION: what is required return for the portfolio?

 

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Status NEW Posted 31 May 2017 06:05 AM My Price 8.00

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