What is the total dollar return for the investment

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Use this information for the following 5 questions. You purchase 3000 shares of Ryan’s stock at a price of $50 per share. One year later, the shares are selling for $57 per share. In addition, a dividend of $2 per share was paid at the end of the year.

1. What is the total dollar return for the investment?

2. Calculate the percentage return on Ryan’s stock. If the stock had a beta of 1.6, and the market risk premium is 9%, what is the implied risk free rate of return?

3. What is the implied dividend growth rate in Ryan’s stock?

4. What is the implied cost of equity capital for Ryan’s stock?

5. Using all the information above, what is the implied risk premium for Ryan’s stock?

Reference no: EM131616414

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