Given the following information for the stock of Foster Company, calculate its beta, Current price per share

Question:

Given the following information for the stock of Foster Company, calculate its beta,

Current price per share of common .............$50.00

Expected dividend per share next year ........... $ 3.00

Constant annual dividend growth rate ............. 9%

Risk-free rate of return .................. 7%

Return on market portfolio ................. 10%

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...