Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. * add to watchlist for questions, 33-35, use the i

* Add to watchlist For questions, 33-35, use the information in the table below: NIKE,...

60.1K

Verified Solution

Question

Finance

image
image
* Add to watchlist For questions, 33-35, use the information in the table below: NIKE, Inc. (NKE) NYSE - NYSE Delayed Price. Currency in USD 75.20 0.00 (0.00%) Buy At close: November 14 4:00PM EST Summary Chart Conversations Statistics Historical Data 119.426B Previous Close 75.20 0.96 Open Market Cap Beta (3Y Monthly) PE Ratio (TTM) 76.32 Bid 74.49 x 800 59.59 Ask 82.76 x 3000 1.26 EPS (TTM) Day's Range 74.89 - 77.49 Dec 19, 2018 - Dec 24, 2018 52 Week Range 56.41 - 86.04 0.80 (1.07%) Earnings Date Forward Dividend & Yield Ex-Dividend Date 1y Target Est Volume 7,984,223 2018-08-31 Avg. Volume 7,538,563 87.76 I 33. 4 points. Compute the holding period return for the stock. 34. 4 points. If the stock has a required return of 7.0%, what is the value of the stock? 1416 35. 3 points. What is the stock fair return according to CAPM? Assume a risk free rate of 3.5% and a market risk premium of 5% 35a. 2 points. By comparing, the fair return according to CAPM to the HPR that you calculated in #33, do you think the stock is overvalued or undervalued? Should you buy it? 35b. 4 points. What current stock price would reflect a fair return according to CAPM

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students