A common stock offers dividend of $2 next period and its price is $30 next period. Suppose that the covariance of this s
Posted: Wed May 18, 2022 11:07 pm
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?
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?