What should be current stock price and required return

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Reference no: EM131056297

1) What is the required return for Dentrix Corporation? The risk-free rate is 2.5%, the risk premium is 6.8, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 1.09. round your answer to two decimal places and express your answer as a percentage, not as a decimal.

2) Ranyard's beta is 1.18, and the last dividend per share paid was $3.68. The market risk premium is estimated to be 6.56%, and the real rate of interest is 2.17%. The liquidity risk premium is 0.9%. Analysts expect the company to grow at a rate of 3.95% indefinitely. The risk free rate is 3.26%. What should be Ranyard's current stock price? Round your answer to two decimal places.

Reference no: EM131056297

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