Question: please solve this question from A to C please! 7) (15 Points) XYZ Corporation is expected to pay a dividend of $1.00 in the upcoming
7) (15 Points) XYZ Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of XYZ Corporation has a beta of 1.2. The current stock price is $11.55 A) Calculate the return you should require on XYZ's stock? B) Calculate the intrinsic value of XYZ's stock? C) Do you suggest buying XYZ stock or not? Explain briefly
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