Question: QUESTION 7 10 points Save Answer Solve for Required Rate of Return (r) Do you remember how to solve for Required Return using the CAPM

 QUESTION 7 10 points Save Answer Solve for Required Rate of

QUESTION 7 10 points Save Answer Solve for Required Rate of Return (r) Do you remember how to solve for Required Return using the CAPM (from Chapter 8) Red Raider Corp. common stock has a bota of 0.7. If the risk free rate of return is expected to be 4.73% and the market rate of return is 13%, what is the required return on Red Raider Corp's common stock? Tesclude answers as a % to two decimals, for example 8.34% should be entered as 8.34 Be mindful to the difference between the Market Rate of Return and the Market Risk Premium QUESTION 10 points Save Answer Can you grow a dividend? imagine a firm whose dividends have growing at a rate of 10% per year, which is expected to be the stable growth rate forever. The dividend just paid (DO) was $7.74 and the required rate of return is 12% What is the dividend paid in year 3? Find D3 Round your answer to two decimals

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