"Cache Creek Manufacturing Company is expected to pay a dividend of $1.5 in the upcoming year. Dividends are expected to
Posted: Thu Dec 23, 2021 9:07 am
"Cache Creek Manufacturing Company is expected to pay a dividend
of $1.5 in the upcoming year. Dividends are expected to grow at the
rate of 9% per year. The risk-free rate of return is 1%, and the
expected return on the market portfolio is 12.5%. The stock is
trading in the market today at $10. Using the constant-growth DDM
and the CAPM, the beta of the stock is _________. Hint: use the
constant-growth DDM to determine the market capitalization rate of
the stock. "
of $1.5 in the upcoming year. Dividends are expected to grow at the
rate of 9% per year. The risk-free rate of return is 1%, and the
expected return on the market portfolio is 12.5%. The stock is
trading in the market today at $10. Using the constant-growth DDM
and the CAPM, the beta of the stock is _________. Hint: use the
constant-growth DDM to determine the market capitalization rate of
the stock. "