What is the lower boundary for this stock

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Reference no: EM131916112

#1 General Motors (GM) just paid a dividend of $5.00 per share, which is expected to increase by 4.0 percent per year. The required rate of return on GM stock is 12.0 percent. The value of a share of GM stock, according to the dividend discount model, is $_________.

#2 Sidney owns a stock that has a standard deviation of daily returns of 2.4 percent. Sidney wants to determine the lower boundary of its probability distribution of returns, based on 1.65 standard deviations from the expected outcome. The stock's expected daily return is 0.17 percent. What is the lower boundary for this stock?

Reference no: EM131916112

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