please solve 4f

Expert Q&A Done urgent help Question 4 The table below displays some valuation characteristics for four stocks. Answer the items below by assuming the CAPM holds, and the risk-free interest rate for borrowing and lending is 5% Veld Eag Share Expected Dividend Store Patum DP) A 2450 27% 35100 92 CAPS growth ROE 50% 75 40% 12:30 D w" a portfolio has a CAPM beta of 1.0, then its realised return must be the same as that of the market portfolio True/false? Explain. (You will be marked on the explanation(s) provided) marks) What is the ROE for Stock A? Explain any assumptions you need to make. marks) de Determine the dividend yield for Stock B. Explain any assumptions you need to make tay What is the Present Value of Growth Opportunities (4 marks) (PVGO) implied by the price of Stock C? Explain in detail your calculations. (5 marks) What is the earnings growth rate for Stock D? Explain in detail your calculations (6 marks) in Now suppose that the risk-free interest rate for borrowing is greater than 5% (lenders still receive 5%). For simplicity, assume the optimal risky portfolio is unchanged. How would the share prices of the four stocks be affected? Explain fully (10 marks! Expert Q&A Done urgent help Question 4 The table below displays some valuation characteristics for four stocks. Answer the items below by assuming the CAPM holds, and the risk-free interest rate for borrowing and lending is 5% Veld Eag Share Expected Dividend Store Patum DP) A 2450 27% 35100 92 CAPS growth ROE 50% 75 40% 12:30 D w" a portfolio has a CAPM beta of 1.0, then its realised return must be the same as that of the market portfolio True/false? Explain. (You will be marked on the explanation(s) provided) marks) What is the ROE for Stock A? Explain any assumptions you need to make. marks) de Determine the dividend yield for Stock B. Explain any assumptions you need to make tay What is the Present Value of Growth Opportunities (4 marks) (PVGO) implied by the price of Stock C? Explain in detail your calculations. (5 marks) What is the earnings growth rate for Stock D? Explain in detail your calculations (6 marks) in Now suppose that the risk-free interest rate for borrowing is greater than 5% (lenders still receive 5%). For simplicity, assume the optimal risky portfolio is unchanged. How would the share prices of the four stocks be affected? Explain fully (10 marks