90.2K

Verified Solution

Question

Accounting

I only need question 1 and 3.

image

A stock just paid a dividend of $2.95. The dividend is expected to grow at 25.48% for two years and then grow at 4.60% thereafter. The required return on the stock is 13 62%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 1.03% and the market risk premium is 5.18%. A stock with a of 1.01 will have an expected return of % 6.26% Submit Answer format: Percentage Round to 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Show Hint The risk-free rate is 4.38% and the expected return on the market 12.06%. A stock with a of 0.97 will have an expected return of % Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

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