The expected return on the market

Assignment Help Financial Management

Reference no: EM131073630

A share of stock sells for $53 today. The beta of the stock is .7, and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $1.00 in one year. If the risk-free rate is 5.2 percent, what should the share price be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131073630

Questions Cloud

Identifying potential risk-response and recovery : In Assignment 1, a videogame development company recently hired you as an Information Security Engineer. After viewing a growing number of reports detailing malicious activity, the CIO requested that you draft a report in which you identify potent..

Why do you think this ad is effective at garnering attention : Do you think the advertisement will capture the attention of the marketer's intended target audience? Why or why not? Will the intended target audience be properly exposed to this advertisement? Why or why not?

Determined the amount to be amortized on extrude : Ajax Capital has determined the amount to be amortized on an extrude is $540,000. If the required rate of return is 14% what will be the total interest received over the life of the lease given that lease payments will be made at the beginning of eac..

Three different public and private users : Discuss how health care data is used by at least three different public and private users.

The expected return on the market : A share of stock sells for $53 today. The beta of the stock is .7, and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $1.00 in one year. If the risk-free rate is 5.2 percent, what should the share price be..

Identify the null and alternative hypotheses : Identify the null and alternative hypotheses - Use the Standard Normal Table to find the p-value, critical value(s) and state the decision about the null hypothesis.

Market risk premium-what are the reward-to-risk ratios : Stock Y has a beta of 1.10 and an expected return of 15.60 percent. Stock Z has a beta of .70 and an expected return of 10 percent. If the risk-free rate is 4.0 percent and the market risk premium is 9.0 percent, what are the reward-to-risk ratios of..

Performance improvement models : Analyze one performance improvement model, such as plan-do-check-act, rapid cycle improvement, Six Sigma, or benchmarking. In your assignment, discuss the following:

Average return and standard deviation for market and stock : You are given the following information concerning a stock and the market: Returns Year Market Stock 2008 15 % 27 % 2009 14 30 2010 15 6 2011 –14 –24 2012 37 16 2013 15 25 1. Calculate the average return and standard deviation for the market and the ..

User Account

All Pages