Question: Please answer only in Excel and show the steps that lead to the answer Roxxon Corp. just paid a dividend of $4.50 per share. It's
Please answer only in Excel and show the steps that lead to the answer
Roxxon Corp. just paid a dividend of $4.50 per share. It's estimated the company's dividend will grow at a rate of 12% for the next two years followed by 4% thereafter. The company's stock has a beta of 1.4, the risk free rate is 3.5% and the market risk premium is 6.5%. a. What is the required rate of return on the company stock? 12.6 What is the estimate of the stock's current price? Divided 4.5 b. ROR 12 4 1.4 Beta RFR 3.5 R. Premiur 6.5
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