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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 1P
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An analyst gathered the following information for a stock and market parameters:
. stock beta= 1.11;
expected return on the Market - 9.55%;
expected return on T-bills- 2.03%;
. current stock Price = $5.62;
.
.
.
.
expected stock price in one year $11.26;
expected dividend payment next year = $2.29.
-
Calculate the required return for this stock. Please share your answer as a percentage
rounded to 2 decimal places.
Transcribed Image Text:An analyst gathered the following information for a stock and market parameters: . stock beta= 1.11; expected return on the Market - 9.55%; expected return on T-bills- 2.03%; . current stock Price = $5.62; . . . . expected stock price in one year $11.26; expected dividend payment next year = $2.29. - Calculate the required return for this stock. Please share your answer as a percentage rounded to 2 decimal places.
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