What is the value of the share

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1(a). ZET Co. has just paid a dividend of 0.07$ or 7% per share. An investment analyst estimates that the growth in dividends will be the equivalent of 4% per year. The estimated return for a share of that risk class is 11%.

What is the value of the share according to the constant growth mode!?

1(b). ABC Company has a beta of 1.80. The risk-free rate of return is 1.70 percent and the market rate of return is 6.50 percent.

What is the CAPM cost of equity?

Reference no: EM132645685

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