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  3. you expect the price of cemenco stock to be us$59.

You expect the price of CEMENCO stock to be US$59.77 per share a year from now....

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Finance

You expect the price of CEMENCO stockto be US$59.77 per share a year from now. Its current market priceis US$50.00, and you expect it to pay dividend one year from now ofUS$2.15 per share.

  1. What are the stock’s expected dividend yield, rate of priceappreciation, and expected holding – period return?

  1. If the stock has a Beta of 1.15, the risk – free rate is 6% peryear, and the Expected Rate of Return on the market portfolio is14% per year. What is the Required Rate of Return on CEMENCOstock?

  1. What is the intrinsic value of CEMENCO stock?

Answer & Explanation Solved by verified expert
4.2 Ratings (716 Votes)
iwhereD Expected DividendP0 Current market priceDividend yield 43Rate of price appreciation    See Answer
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