9. 10. 11. 12. 13. You observe a stock price of $18.75. You expect a dividend...

 

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9. 10. 11. 12. 13. You observe a stock price of $18.75. You expect a dividend growth rate of 5%, and the most recent dividend was$1.40. What is the required return? Suppose the real rate is 3.5 percent and the inflation rate is 4.5 percent. What rate would you expect of the nominal interest rate quoted at a Treasury Bill? Say you own an asset that had a total return last year of 11.7 percent. If the inflation rate last year was 3.9 percent, what was your real return? You bought a stock for $40, and you received dividend of $1. The stock is now selling at $50. i. ii. iii. iv. Consider the following information: State Probability What is your dollar return? What is your dividend yield in percentage? What is your capital gains yield in percentage? What is your total percentage return? Boom Normal Recession i. iii. 0.30 0.60 0.10 What is the expected return? What is the variance? What is the standard deviation? Return on Asset X 0.40 0.20 - 0.10 9. 10. 11. 12. 13. You observe a stock price of $18.75. You expect a dividend growth rate of 5%, and the most recent dividend was$1.40. What is the required return? Suppose the real rate is 3.5 percent and the inflation rate is 4.5 percent. What rate would you expect of the nominal interest rate quoted at a Treasury Bill? Say you own an asset that had a total return last year of 11.7 percent. If the inflation rate last year was 3.9 percent, what was your real return? You bought a stock for $40, and you received dividend of $1. The stock is now selling at $50. i. ii. iii. iv. Consider the following information: State Probability What is your dollar return? What is your dividend yield in percentage? What is your capital gains yield in percentage? What is your total percentage return? Boom Normal Recession i. iii. 0.30 0.60 0.10 What is the expected return? What is the variance? What is the standard deviation? Return on Asset X 0.40 0.20 - 0.10

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