Question: I need all 3 questions answer !!! Practice Questions for Chapter 6, and 10 Given the following stock prices and annual dividends for stock A,
Practice Questions for Chapter 6, and 10 Given the following stock prices and annual dividends for stock A, calculate stock returns excluding dividends for each year, the total returns, the corresponding return relatives, the arithmetic mean return over the holding period 1991-1995, the geometric mean return, the risk level of this stock, and the cumulative wealth index (assume w_0 = $1). The historical P/E ratio for 21st Century Estate is 10. The earnings per share is projected to be $2.42 for the next fiscal year. What is your estimate of the stock price by the end of next year? Dukes Power and Gas is currently paying dividend of $1.80. This dividend is expected to grow at a rate of 6 percent in the future. Dukes Power is 10percent less risky than the market as a whole. The market risk premium is percent, and the risk free rate is 5 percent. What is the estimated price of this stock
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