Question: Beta = 1.897 Assuming the beta calculated above, and assuming E(RM) = 12%; Rf= 8%. The company expects the following dividends: D0 = 1, D1

Beta = 1.897

Assuming the beta calculated above, and assuming E(RM) = 12%; Rf= 8%. The company expects the following dividends: D0 = 1, D1 = 2, D2 = 3. D3 = 4, D4 = 5, D5 = 6. Assume that dividends grow at a negative 4% thereafter. Find P2.

Beta has to be used to find the answer

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