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Determine the value of the stock

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  1. The risk-free rate is 3.35% and the market risk premium is 6.99%. A stock with a β of 0.99 just paid a dividend of $2.48. The dividend is expected to grow at 20.46% for three years and then grow at 3.73% forever. What is the value of the stock?
  2. The risk-free rate is 3.59% and the market risk premium is 5.80%. A stock with a β of 0.87 just paid a dividend of $2.01. The dividend is expected to grow at 20.55% for five years and then grow at 3.41% forever. What is the value of the stock?
  3. The risk-free rate is 3.86% and the market risk premium is 8.04%. A stock with a β of 0.83 just paid a dividend of $1.84. The dividend is expected to grow at 22.81% for three years and then grow at 4.95% forever. What is the value of the stock?
  4. The risk-free rate is 1.44% and the market risk premium is 6.30%. A stock with a β of 1.57 just paid a dividend of $2.75. The dividend is expected to grow at 20.62% for five years and then grow at 4.76% forever. What is the value of the stock?

Reference no: EM132485024

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