Question: 1. State Street Corp. will pay a dividend on common stock of $4.80 per share at the end of the year. The required return on

1. State Street Corp. will pay a dividend on common stock of $4.80 per share at the end of the year. The required return on common stock is 13.2%. The firm has a constant growth rate of 7.2%. Compute the current price of the stock (P.). 2. The market and stock I have the following probability distributions: (Rm is rate of return for market, Rj is rate of return of stock J) Probability 0.2 Rm 16% Rj 22% 0.4 15 20 0.3 12 5 0.1 9 12 | A. Calculate the expected rates of return for the market and stock J. B. Calculate the standard deviations for the market and stock J. C. Calculate CVs for the market and stock J
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