Advantages-disadvantages of discounted cash flow valuation

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Reference no: EM131351538

1. A stock has a beta of 2, the risk-free rate is 4%, and the market risk premium is 6%. What is the expected return on the stock?

2. What are the advantages and disadvantages of Discounted cash Flow valuation( in short)

3. Tootsie Roll company pays an annual dividend of $0.32 per share, has a dividend yield of 1.3%, and a PE Ratio of 33.9. Using the dividend yield, calculate the closing price for Tootsie Roll on this day.

Reference no: EM131351538

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