Question: could you please help me to figure out all problems? Sisters Corp expects to earn $5 per share next year. The firm's ROE is 20%

could you please help me to figure out all problems?
Sisters Corp expects to earn $5 per share next year. The firm's ROE is 20% and its plowback ratio is 40%. The market in which Sisters Corp is located has an average investors' risk aversion level of 2 and a variance (on its returns) of 0.03. The risk-free rate is 4% and Sisters' beta is 1.2. Based on the above information, what is the market risk premium? 2 points Your answer What is the expected return (required return) of Sisters' equity? 2 points Your answer What is Sisters' dividend next year (in dollars per share)? 2 points Your answer What is Sisters' expected growth rate? 2 points Your answer What is the intrinsic value of Sisters' equity (per share)? 2 points Your
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
