Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Carolll$1,512.43
Zin$1,502.43
Visitor$1,268.61
Visitor$1,251.28
cuiting$1,249.70
Visitor$1,198.33
Jade$1,145.80
Skywalke...$1,070.00
mm11$1,050.33
ninalee$1,039.70
Visitor$1,024.70
Yuan$1,003.33
Visitor$996.00
Visitor$985.61
victor$934.70
zy$919.70
Doris$889.70
Emma Lu$880.00
Visitor$840.00
 

Question 232  CAPM, DDM

A stock has a beta of 0.5. Its next dividend is expected to be $3, paid one year from now. Dividends are expected to be paid annually and grow by 2% pa forever. Treasury bonds yield 5% pa and the market portfolio's expected return is 10% pa. All returns are effective annual rates.

What is the price of the stock now?




Copyright © 2014 Keith Woodward