Microsoft Corp (MSFT) stock has its closing price at $232.38 (2/26/17). It currently (2017) pays $0.42 per
Question:
Microsoft Corp (MSFT) stock has its closing price at $232.38 (2/26/17). It currently (2017) pays $0.42 per share quarterly dividend (the dividend was $0.13 per share quarterly in 2009 (12 years ago).
A) Assuming constant growth, what is the growth rate on the MSFT stock dividend?
Group of answer choices
- 35.90%
- 15..72%
- 12.94%
- 11.89%
B) For the past 5 years, the Dow Jones Industrial Average went from 16,497.00 (2/29/16) to 30,912.00 (2/26/17). Assume it represents the expected return for the market portfolio, what is the expected return for the market portfolio?
Group of answer choices
- 17.00%
- 6.48%
- 11.03%
- 37.48%
- 13.38%
C) Currently, the beta for MSFT stock is 0.82, and the yield on 3-month T-bill is 0.04%. What is the required return for MSFT stock based on CAPM?
Group of answer choices
- 11.10%
- 16.31%
- 10.98%
- 11.45%
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren