Expected beta of national chain of home goods stores

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1. A stock is expected to pay a dividend of $2.00 each year for the next 3 years, after that the dividend is expected to grow at a constant rate of 8% per year forever. The stock s required rate of return is 10%. What is intrinsic value of the stock today?

$78.74

$108.00

$21.20

None of these

$86.12

2. What is expected beta of a national chain of home goods stores?

Between 0 and 1

Not enough information given

Near 1

Greater than 1

Near 0

Reference no: EM131897036

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