How much is the stock worth

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Reference no: EM131321585

1. Using CAPM. A stock has a beta of 1.15, the expected return on the market is 11 percent, and the risk-free rate is 5 percent. What must the expected return on this stock be?

2. Since we discussed the four financial statements, lets look at the personal financial statement. How many of you have a budget that you use? Why or why not?

3. Using CAPM. A stock has an expected return of 10.2 percent, the risk-free rate is 4 percent, and the market risk premium is 7 percent. What must the beta of this stock be?

4. ABC will pay a dividend of $3.00 and dividends will grow by 8%. The risk free rate is 3.5%; the market risk premium is 7%. ABC's beta is 1.25. How much is the stock worth?

Reference no: EM131321585

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How much is the stock worth : Using CAPM. A stock has a beta of 1.15, the expected return on the market is 11 percent, and the risk-free rate is 5 percent. What must the expected return on this stock be? ABC will pay a dividend of $3.00 and dividends will grow by 8%. The risk fre..

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