Salt Lake City Services, Inc , provides maintenance services for commercial buildings Currently, the beta on its common stock is 1 08 The risk free rate is now 10 percent, and the expected return on the market portfolio is 15 percent It is January 1, and the company is expected to pay a $2 per shar...

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Salt Lake City Services, Inc., provides maintenance services for commercial buildings. Currently, the beta on its common

Question:

Salt Lake City Services, Inc., provides maintenance services for commercial buildings. Currently, the beta on its is 1.08. The risk-free rate is now 10 percent, and the on the market is 15 percent. It is January 1, and the company is expected to pay a $2 per share at the end of the year, and the is expected to grow at a compound annual rate of 11 percent for many years to come. Based on the CAPM and other assumptions you might make what dollar value would you place on one share of this common stock?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... 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...