What should be the price of the stock today

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1. The common stock of ABC Corp. just paid a dividend of $3.00 per share today. You expect that dividend to grow at a constant rate of 6% per year indefinitely. If the stock has a required rate of return of 11%. What should be the price of the stock today?

2. The preferred stock of EMA, Inc. pays a dividend of $50.00 per year. If the yield on this instrument is 11%, what should the price of this stock be in the stock market?

3. A stock has a beta of 1.56 percent and an expected return of 17.3 percent. a risk free asset currently earns 5.1 percent. if a portfolio of the two assets has a beta of 0.87, what are the portfolio weights?

Reference no: EM131932826

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