Stock has expected return-expected return on market

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1. Estes Park Corp. pays a constant $9.05 dividend on its stock. The company will maintain this dividend for the next 9 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price?

2. A stock has an expected return of 15 percent, a beta of 1.70, and the expected return on the market is 10.8 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate %

Reference no: EM131936511

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