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.
- What are the stock’s expected dividend yield, rate of priceappreciation, and expected holding – period return?
- 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?
- What is the intrinsic value of CEMENCO stock?
