What do investors expect the stock to sell for at the end

Reference no: EM13263655

Assume the risk-free rate is 2% and the expected rate of return on the market is 12%. A share of stock is now selling for $100. It will pay a dividend of $9 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?

Reference no: EM13263655

Questions Cloud

What lens power is needed to correct his nearsightedness : An individual is nearsighted; his near point is 16.0 cm and his far point is 47.0 cm. What lens power is needed to correct his nearsightedness

How many shares of stock must be sold : The underwriters charge a 7.8 percent spread, the administrative costs are $411,000, and the offer price is $35 per share. How many shares of stock must be sold if the firm is to raise the funds it desires?

At what frequency do you year the siren : You are driving north on 107th Avenue at a speed of 32.3 mph. A police car whose siren produces a sound at a frequency of 513 Hz is approaching from the opposite direction at a speed of 61 mph, At what frequency do you year the siren

What is the stocks beta : A stock has a correlation with the market of .25. The standard deviation of the market is 20%, and the standard deviation of the stock is 45%. What is the stock's beta?

What do investors expect the stock to sell for at the end : Assume the risk-free rate is 2% and the expected rate of return on the market is 12%. A share of stock is now selling for $100. It will pay a dividend of $9 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to s..

What is the treynor measure of the portfolio : A portfolio P generates an annual return of 16%, a beta of .8, and a standard deviation of 25%. The market index return is 15% and has a standard deviation of 21%. T-bill rate is 3%.

Derive the market demand for loanable funds : The current market rate of interest is 8 percent. At that rate of interest, businesses borrow $500 billion per year for investment and consumers borrow $100 billion per year to finance purchases. The government is currently borrowing $100 billion ..

What are the various models of retail competition : Describe the text's retail strategic planning and operations management model.

What is the value of this bond today : A different bond pays 6.5% annual interest once per year, has 9 years to maturity, and a $1,000 par or maturity value. Given the risk level of this bond the market demands a 8.2% interest rate. What is the value of this bond today?

User Account

All Pages