Question: answer this question An analyst gathered the following information for a stock and market parameters: - stock beta =1.34 - expected return on the Market

answer this question answer this question An analyst gathered the following information for a stock

An analyst gathered the following information for a stock and market parameters: - stock beta =1.34 - expected return on the Market =9.67%; - expected return on T-bills =1.89%; - current stock Price =$6.67; - expected stock price in one year =$10.42; - expected dividend payment next year =$2.08. Calculate the required return for this stock. Please share your answer as a percentage rounded to 2 decimal places. An analyst gathered the following information for a stock and market parameters: - stock beta =1.34 - expected return on the Market =9.67%; - expected return on T-bills =1.89%; - current stock Price =$6.67; - expected stock price in one year =$10.42; - expected dividend payment next year =$2.08. Calculate the required return for this stock. Please share your answer as a percentage rounded to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Turbine blades mounted to a rotating disc in a gas turbine engine are exposed to a gas stream that is at T = 1200C and maintains a convection coefficient of h = 250 W/m2 K over the blade. The...

answer this question An analyst gathered the following information for a stock and market parameters: - stock beta =1.03 - expected return on the Market = 11.24%; - expected return on T-bills =4.05%;...

An analyst gathered the following information for a stock and market parameters: stock beta = 1.080; expected return on the Market = 9.50%; expected return on T-bills = 2.10%; current stock Price =...

Q12) An analyst gathered the following information for a stock and market parameters: stock beta =0.889; expected return on the Market =10.93%; expected return on T-bills =3.47%; current stock Price...

Q12) An analyst gathered the following information for a stock and market parameters: stock beta =0.716; expected return on the Market =10.83%; expected return on T-bills =4.00%; current stock Price...

3 O 1 52 53 54 65 66 67 An analyst gathered the following information for a stock and market parameters: stock beta 1.415; expected return on the Market = 10.23%; expected return on T-bills 4.55%;...

The market risk premium for next period is 9.10% and the risk-free rate is 3.70%. Stock Z has a beta of 0.953 and an expected return of 14.70%. Calculate the following. Please write your answers as...

Answer these questions An analyst gathered the following information for a stock and market parameters: - stock beta =1.38 - expected return on the Market =10.62%; - expected return on T-bills =2.98%...

There is a37.05%probability of an average economy and a62.95%probability of an above average economy.You invest44.90%of your money in Stock S and55.10%of your money in Stock T.In an average economy...

Q13) The market risk premium for next period is 8.53% and the risk-free rate is (1.94%. Stock Zhas a beta of 0.837 and an expected return of 11.94%. Compute the following: a) Market's reward-to-risk...

Q1) There is a 22.60% probability of a below average economy and a 77.40% probability of an average economy.If there is a below average economy stocks A and B will have returns of -6.90% and 8.80%,...

Write an equation corresponding to Eq. (30.13) for the current shown in Fig. 30.11 just after switch S2 is closed and switch S1 is opened, if the initial current is I0. Use integration methods to...

2 minutes to upload 8 digital photographs from your computer to a websi how long will it take to upload 20 photographs? (Answer in minutes ) ipe that yields 12 buttermilk biscuits calls for 2 cups of...

If an employer offers retirement benefits, they are typically offered in the form of which of the following? ( Check all that apply. ) A term life insurance policy A pension A present value...

On January 1, 2020, Quick Travel Transportation Company purchased a used aircraft at a cost of $60,400,000. Quick Travel expects the plane to remain useful for five years (7,300,000 miles) and to...