Reference no: EM132783579

Q1.) What is the expected rate of return on National Healthcare's stock if the next expected dividend (D1) is $3, the stock is currently selling for $30, and it has an expected constant growth rate of 6 percent?

Q2.) Your current income is $50,000 per year, and you would like to maintain your current standard of living (i.e., your purchasing power) when you retire. If you expect to retire in 30 years and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years?

Q3.) Assume that the risk-free rate is 9 percent, the required rate of return on the market (or an average-risk stock) is 13 percent, and the required rate of return on Acme Healthcare stock is 15 percent. What is the implied beta coefficient of the stock?