What would be the required return on the stock

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Reference no: EM131938751

Now you are going to include some examples, including:

a. a stock has a beta coefficient of 1.8, the risk-free rate is 5%, and the required return on the market is 9%. What would be the required return on the stock?

b. a stock that is constant growth whose last dividend (paid yesterday) was $1.50 and whose dividend is expected to grow indefinitely at 4%:

-what would be the expected dividend stream over the next 3 years?

-what is the firm’s current stock price?

-what is the stock’s expected value one year from now?

-what are the expected dividend yield, capital gains yield, and total return during the first year?

Reference no: EM131938751

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