1). Suppose Nabisco Corporation just issued a dividend of $2.05 per share yesterday. Subsequent dividends will grow at a constant rate of 4.08% indefinitely. If the required rate of return for this stock is 15.31%, what is the value of a share of common stock today? Once you have completed all calculations, please round your answer to two decimal places.

2) What is the value of a share of preferred stock that promises to pay $1.85 every year, indefinitely, if you have a required rate of return of 7.27%? Once you have completed all calculations, please round your answer to two decimal places.

3) A stock has monthly returns of -2.14%, 1.02%, -1.1% , and 1.43%. What is the stock's geometric average return? Please write your answer as a percentage (e.g. .1234 should be written as 12.34).

4) The market risk premium for next period is 4.20% and the risk-free rate is 4.00%. Stock Z has a beta of 0.955 and an expected return of 11.50%. Calculate the following. Please write your answers as percentages (e.g. .1234 should be written as 12.34):

A. Market's reward-to-risk ratio:%

B. Stock Z's reward-to-risk ratio:

5) You are invested 29.80% in growth stocks with a beta of 1.987, 38.10% in value stocks with a beta of 0.934, and 32.10% in the market portfolio. What is the beta of your portfolio? After completing all calculations, please round your answer to four decimal places.

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1 To calculate the value of a share of common stock using the constant growth dividend model we can use the formula Value of Stock Dividend Required R... View the full answer