You expect the price of ABC stocks to be $75 per share a year from now. its current market price is $ 60, and you expect
Posted: Wed Jul 06, 2022 6:40 pm
You expect the price of ABC stocks to be $75 per share a yearfrom now. its current market price is $ 60, and you expect it topay a dividend one year from now of $ 30.5 per share :
a) what are the stocks expected dividend yield, rate of priceappreciation, and expected holding period return?
b) if the stock has a beta of 1.2 the risk free is 5% per year,and the expected rate of return on the market portofio is 15% peryear, whar is the required rate of return on ABC stock
c) what is the intrinsic value of ABC stock. and how does itcompare to the current market price?
a) what are the stocks expected dividend yield, rate of priceappreciation, and expected holding period return?
b) if the stock has a beta of 1.2 the risk free is 5% per year,and the expected rate of return on the market portofio is 15% peryear, whar is the required rate of return on ABC stock
c) what is the intrinsic value of ABC stock. and how does itcompare to the current market price?