What should be the price of the stock in six years

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Reference no: EM131348608

1. You find a stock that just paid a dividend of $1.50 that is expected to grow at 6%. If the required return on the stock is 11%, what should be the price of the stock in six years?

2. If a stock's beta increases, with no other changes, what should happen to the price of the stock?

3. A stock priced at $53 just paid a dividend of $2.25. If you require a return of 16% for this stock, what is the minimum growth rate you would require from this stock?

Reference no: EM131348608

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