Question: ems: Please answer the following Problems (20 points each) 1) Given the following securities, please estimate the required rate of return. a) Ebay b= +2.90
ems: Please answer the following Problems (20 points each) 1) Given the following securities, please estimate the required rate of return. a) Ebay b= +2.90 b) Oregon Electric b= +.32 c) Brinks Security b= -.65 The market rate = 10% and U.S. Treasury Bills are currently earning 6.5% 2) Warned Corp., which is a manufacturer of computer parts, has been in business only a fa Its board of directors decided to pay a dividend next year to help boost the attractiveness stock: It will pay $.28 in dividends per share next year, after which its dividends are exp grow at 5 percent per year. Given a stock beta of 2.1, a market rate of return of 9 percent percent T-bill rate, should the company share be purchased if they are currently selling fa 3) What is the present value of the following stream of payments if the required rate of return 10%
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