Question: Information from the problem: Beta 1 . 1 4 Risk - free rate 2 . 5 0 % Stock index return 8 . 0 0

Information from the problem:
Beta 1.14
Risk-free rate 2.50%
Stock index return 8.00%
Current dividend $5.00
Best Baseline Worst
Supernormal growth 10.00%8.00%5.00%
Growth period 6 years 4 years 2 years
Normal growth 2.20%1.80%1.40%
Probability of the scenario 20.00%40.00%40.00%
Calculate the expected value of the share given these estimates.

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