Question: Question 11 (1 point) Consider a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3
Question 11 (1 point) Consider a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after that, the dividends are expected to grow at a constant rate of 6% per year forever. The stock's required return is 14%. Find the dividend yield during the seventh year. 6% 8% 9% 14% Question 12 (1 point) The standard deviation of the stock of SafeComp is equal to 16% and its beta coefficient is equal to 0.8. The beta coefficient of RiskyComp is equal to 1.2. Assume the risk-free interest rate is equal to 0%. What can you say about the standard deviation of RiskyComp stock return? It is equal to 24% It is equal to 36% It is at least 16%, but it is neither 24% nor 36% None of the above
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