Use capm to calculate the required rate of return

Assignment Help Financial Management

Reference no: EM131998430

The risk-free rate of return is 2%, the required rate of return on market is 10%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected in the coming year, D1, is $2.50 and the dividend is expected to grow by 2% every year going forward, at what price should a share? (USE CAPM to calculate the required rate of return)

Reference no: EM131998430

Questions Cloud

Seven domains of a typical it infrastructure : Why would gap analysis be used and how would it be used in one of the seven domains of a typical IT infrastructure?

Example of a very poorly implemented database : We all had the unfortunate experience of seeing how computers can, at times, make life's journey abit more difficult.

Discuss why it is essential for awardees of grants to manage : Discuss why it is essential for awardees of grants to manage their awards using an electronic information system.

Why is the important to testing and assessments : Write a paper 3 to 4 page paper (not including the Title Page and Reference Page) that discusses the following each item with regards to reliability.

Use capm to calculate the required rate of return : The risk-free rate of return is 2%, the required rate of return on market is 10%, USE CAPM to calculate the required rate of return

Describe three technological components : Describe three technological components that are required for data driven decision and how each component is relevant to business analytics.

Wish to spend all of their money during their lifetime : How much money can they withdraw annually if they wish to spend all of their money during their lifetime?

Determine the resources needed for an investigation : What are some of the ways to determine the resources needed for an investigation? Include examples of the resources needed in your reply.

Free cash flow to equity : Company ABS's free cash flow to equity (FCFE) was $50 million at the beginning of the year.

User Account

All Pages