Homework 8 (Chapter 11) Saved Help Save & Exit Submit Check my work 1 Top hed fund mal Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $56. The stock will pay a dividend at year-end of $4.00. Assume that risk-free Treasury securities currently offer an interest rate of 1.9%. Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2015 (figures in percent per year) are as follows. 15 points ebook Average Premium (Extra return versus Treasury bille) (8) Priet Average Annual Rate of Return (N) 3.8 5.3 Portfolio Treasury bills Treasury bonds Common stocks References 1.5 7.6 What is the discount rate on the stock? (Enter your answer as a percent rounded to 2 decimal places.) Discount rate Homework 8 (Chapter 11) Saved Help Save & Exit Sub Check my word 1 Treasury bonds Common stocks 5.3 11.4 1.5 7.6 What is the discount rate on the stock? (Enter your answer as a percent rounded to 2 decimal places.) 15 points Discount rate % eBook Print References What price should she be willing to pay for the stock today? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Stock price