a)A stock hasa beta of 1.5 and an is the risk free rate if the mauked rate of retum is 12.57. expeeted retom of 16. 35 Y.What b) You want to retire in 25.4ears. You currontY have $200,000 saed and you Interest mte wll you need to earm to meet your goal? beliene you need $ 1,20000 at retirement. hhat annual c) The expected growth rate of dividends is -1 for ia s tock carrenitly priced at d 60,that yust paid a dividend af $7 and has a required redur n of 20%. oota s

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ma)Astock hasa beta of 1.5 and an
is the risk free rate f the mauked rate of retum is 12.57.
exopected retom of 16.35 % Wwhat
b) You want to rehire in 25.4ears. You currontY have $200,000 saved
and
you
Interest mte wll you nees to earm to meet your goul?
beli ere you need $ ,200000 at etiremente What annual
c) The expected growth rate of dividends is
as tuek
dividend of $7 and
currently priced at 1 60, that yust paid a
has a requiired
redur n of 20%.
of 201.
Transcribed Image Text:Ma)Astock hasa beta of 1.5 and an is the risk free rate f the mauked rate of retum is 12.57. exopected retom of 16.35 % Wwhat b) You want to rehire in 25.4ears. You currontY have $200,000 saved and you Interest mte wll you nees to earm to meet your goul? beli ere you need $ ,200000 at etiremente What annual c) The expected growth rate of dividends is as tuek dividend of $7 and currently priced at 1 60, that yust paid a has a requiired redur n of 20%. of 201.
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