Zayn Inc. has a beta of 0.9. The risk-free return is equal to 2% and...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Zayn Inc. has a beta of 0.9. The risk-free return is equal to 2% and the market risk premium is equal to 6%. Zayn share currently sells for $60.1 and it is expected to pay a dividend of $3 per share at the end of the year. Dividends are expected to grow at a constant rate, g. Calculate the estimated share price in 6 years. Note 1: You should calculate the required rate of return rs and the constant growth rate g first. Note 2: Show your steps in the reasons box
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.