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The current price of stock W (Z) is $144.50 ($210.00) Analysts expect that in one year a dividend of $5.60 ($4.80) will
Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
- The Current Price Of Stock W Z Is 144 50 210 00 Analysts Expect That In One Year A Dividend Of 5 60 4 80 Will 1 (22.29 KiB) Viewed 11 times
The current price of stock W (Z) is $144.50 ($210.00) Analysts expect that in one year a dividend of $5.60 ($4.80) will be paid on stock W (Z). In addition, analysts expect the price of stock W (Z) in one year to be $161.30 ($237.75). Stock W (Z) has a beta of 1.10 (1.50). The risk-free rate is 3.5% and the market risk premium is 8.0%. 4 pts a. Given the required return from CAPM, what current stock price for W would we expect? b. What is the alpha for Z?