Linke Motors has a beta od 1.30 and an expected dividend growth rate of 4.50% per year.
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Question:
Linke Motors has a beta od 1.30 and an expected dividend growth rate of 4.50% per year. The T-bond rate is 6.5% and investors expect the annual future stock market return to be 10.00%. Based on SML, what is the firm's required return? Do not round your intermediate calculations.
Choose one answer from below:
A) 11.05%
B)12.71%
C) 10.50%
D) 10.17%
E) 13.48 %
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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