What is the expected return on this stock

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Reference no: EM131899158

1. Microsoft Co. has common stock with a beta of 1.46. The expected return on the market is 13.9% and the risk-free rate is 3.8%. What is the expected return on this stock?

A. 15.28%

B. 16.58%

c. 17.38%

D. 18.95%

2. What constant growth rate in dividends is expected for a stock valued at $32.00 if next 43) year's dividend is forecast at $2.00 and the appropriate discount rate is 13 percent? SHOW WORK PLEASE.

Reference no: EM131899158

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