Question: According to the CAPM, what return can we expect for RC? a. 4.50% b. 6.60% c. 7.61% d. 10.10% e. 11.40% For problems 22-24 assume

According to the CAPM, what return can we expect for RC? a. 4.50% b. 6.60% c. 7.61% d. 10.10% e. 11.40% For problems 22-24 assume that the growth rate for RC is 2.1% and the required return on RC is 9.5% 22. Using the constant dividend model, what should be the trading price of RC? a. $24.74 b. $25.26 c. $31.76 d. $32.42 23. Using the Free Cash Flow Growth Model, what should be the trading price of RC? a. $17.11 b. $25.26 c. $41.89 d. $42.77 e. $50.22 24. Using the Intrinsic Value Model, what should be the trading price of RC (assume that the dividend will stay the same)? a. $25.26 b. $27.85 c. $30.00 d. $32.42

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