Question: please show work and reasoning :) Beta and Value A firm is expected to pay an annual dividend of $.70 next year. After next year
please show work and reasoning :)
Beta and Value A firm is expected to pay an annual dividend of $.70 next year. After next year the firm's dividends will grow at a steady state lists a stok beta of 162 while Yahoo is reporting a beta of 1.56. The stock is currently priced at $12.30. If E(RM-Rf 72% and the risk free rate is 2.2% the stock is Line beta and is rate of 5% per year. You are trying to value the stock and Value Line if you use the Value if you use the Yahoo beta O underpriced by $1.53, underpriced by $1.23 O overpriced by $4.40, overpriced by $4.00 O overpriced by $400, overpriced by $4.40 O underpriced by $1.23, underpriced by $1.53
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