Question: HELP -All questions on page- likelihoods, 25. Compute the expected return given these three economic states, their and the potential returns. Please set your decimal
likelihoods, 25. Compute the expected return given these three economic states, their and the potential returns. Please set your decimal places to 6 places. Return 30% Economic State Fast Growth Slow Growth Recession Probability 0.2 0.5 0.3 | 6% 2% A. 8.4% B. 9.6% C. 17.0% D. 19.0% E. None of the above 26. A firm is expected to pay a dividend of $3.00 next year and $3.21 the following year. Financial Analysts believe the stock will be at their target price of $80.00 in two years. Compute the value of this stock today if the required return is 13 percent A. $50.00 B. $67.52 C. $67.82 D. $86.21 E. None of the above 27. Financial analysts forecast GE growth for the future to be 10 percent. Their recent dividend was $0.83. What is the value of their stock when the required rate of return is 12 percent? A. $0.4150 B. $0.4565 C. $41.50 D. $45.65 E. None of the above 28. A fast-growing firm recently paid a dividend of $0.50 per share. The dividend is expected to increase at a 25 percent rate for the next 3 years. Afterwards, a more stable 12 percent growth rate can be assumed. If a 15 percent discount rate is appropriate for this stock, what is its value today? A. $5.00 B. $22.62 C. $25.75 D. $36.46 E. None of te Abar
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
