Question: e keep 4 decimal digits when entering your answers ABC common stock is expected to have extraordinary growth in earnings and dividends of 23% per

e keep 4 decimal digits when entering your answers

ABC common stock is expected to have extraordinary growth in earnings and dividends of 23% per year for 2 years, after which the growth rate will settle into a constant 6%. If the discount rate is 17% and the most recent dividend was $4, what should be the approximate current share price (in $ dollars)? $_________.

You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 0.81 and the beta of the portfolio is 0.99, what does the beta of stock B have to be?

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