A common stock offers dividend of $2 next period and its price is $30 next period. Suppose that the covariance of this s

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answerhappygod
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A common stock offers dividend of $2 next period and its price is $30 next period. Suppose that the covariance of this s

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A common stock offers dividend of $2 next period and its price
is $30 next period. Suppose that the covariance of this stock and
market is 24, market average return is 18% and market standard
deviation is 4%, and the risk-free interest rate is 5%. What is
proper discount rate for this stock? What is the value of this
stock today?
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