a company currently pays a dividend of $4 per share (Do=$4). its estimated that the...
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a company currently pays a dividend of $4 per share (Do=$4). its estimated that the company's dividend will grow at a rate if 10% per year dor the next 3 years and the. a constant rate of 5% thereafter.the companys stock has a beta of 1.5, the risk-free rate is 4% and the market risk premium is 4% a) what is the companys required rate of return on its stocks b) what are the expected dividends for year 1, year 2, year 3 and year 4 c) what is the companys horizon value on year 3 d) what is the estimate of the stocks current price?
the companys stock has a beta of 1.5, the risk-free rate is 4% and the market risk premium is 4%
a) what is the companys required rate of return on its stocks
b) what are the expected dividends for year 1, year 2, year 3 and year 4
c) what is the companys horizon value on year 3
d) what is the estimate of the stocks current price?
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