3. The Chocolate Factory is expected to pay $2 dividend per share at the end of the year. This dividend is expected grow
Posted: Sun May 29, 2022 4:50 pm
3. The Chocolate Factory is expected to pay $2 dividend per
share at the end of the year. This dividend is expected grow
indefinitely at a constant rate of 6% per annum. The required rate
of return on the stock is 10%.
a) Calculate the price of the share today.
b) The risk-free rate is 2% and the return of a market portfolio
is 4%. Calculate the Beta of The Chocolate Factory
share at the end of the year. This dividend is expected grow
indefinitely at a constant rate of 6% per annum. The required rate
of return on the stock is 10%.
a) Calculate the price of the share today.
b) The risk-free rate is 2% and the return of a market portfolio
is 4%. Calculate the Beta of The Chocolate Factory