Stock has expected return and standard deviation

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Reference no: EM132016027

1. Suppose Nabisco Corporation just issued a dividend of $2.52 per share yesterday. Subsequent dividends will grow at a constant rate of 3.13% indefinitely. If the required rate of return for this stock is 13.93% ,

What is the value of a share of common stock today?

2. A stock has an expected return of 9.69% and a standard deviation of 15.84%. Compute the following for this stock:

a) Upper range of 68% confindence interval :

b) Lower range of 68% confindence interval :

c) Upper range of 95% confindence interval :

d) Lower range of 95% confindence interval :

e) Upper range of 99% confindence interval :

f) Lower range of 99% confindence interval :

Reference no: EM132016027

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