Find the price of stock, Delilah, Corporation currently

Find the price of stock

Reference no: EM1354674

11. Delilah, Inc. currently pays a $2.25 common stock dividend, with dividends expected to grow at a 4% rate over the long-term. Assuming a risk free rate of 4.25%, an expected return on the market of 10%, and a stock beta of 0.70, what should be the price of Delilah's stock?

12. Asset A has an expected return of 7% and a standard deviation of 15%; asset B has an expected return of 10% and a standard deviation of 20%. If the covariance (COV) of the two assets is 0.006, what is the standard deviation of the portfolio with a 50/50 allocation?

13. The S&P has a standard deviation of 18%. If stock ABC has a standard deviation of 15% and a correlation coefficient of 0.6 with the S&P, what is ABC's beta relative to the S&P?

Reference no: EM1354674

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