Question: for part f the first three blanks are either increase or decrease. the 4th blank is either less or more. and the last blank is
The risk-free rate of return is 3 percent, and the expected return on the market is 9 percent. Stock A has a beta coeffident of 1.6, an earnings and dividend growth rate of 7 percent and a current dividend of $1.90 a share. Do not round intermediate calculations. Round your answers to the nearest cent. What should be the market price of the stock? .13 b. If the current market price of the stock is $15.00, what should you do? The stock B be purchased If the expected return on the market rises to 11.3 percent and the other variables remain constant, what will be the value of the stock? $ d. If the risk free return rises to 4 percent and the return on the market rises to 11.6 percent, what will be the value of the stock $ a. I the beta coefficient fans to 1.5 and the other variables remain content, what will be the value of the stock $ Explain why the stock value changes in through e. The increase in the return on the market the required return and the value of the stock The increase in the risk-free rate and the simultaneoud increase in the return on the market cause the value of the stock to The decrease in the beta coeficient causes the firm to become sky as measured by be wich the value of the stock
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