rating Current Stock Price Current Dividends 5-Year Avg. Dividend Growth Current
ID: 2766952 • Letter: R
Question
rating Current Stock Price Current Dividends 5-Year Avg. Dividend Growth Current Beta 1 $12.05 $0.95 0.65 0.65 2 $28.02 $0.00 -100 2.3 3 $17.75 $0.00 0 1.89 4 $92.43 $1.30 6.23 1.2 5 $63.79 $0.75 0.95 1.35 6 $2.88 $0.00 -8 1.05 7 $10.00 $0.00 0 1.78 8 $49.51 $0.68 0.75 0.95 9 $101.00 $5.00 0.38 0.92 10 $39.78 $0.00 -90 1.5 11 $29.75 $2.00 2.25 0.85 12 $73.09 $0.00 -1 0.38 13 $20.39 $6.00 5.25 0.71 14 $18.25 $0.00 0 1.2 15 $7.00 $1.35 8.85 0.73 Current Treasury Bond Rate 4.30% Average return on the Bond Market 11.90% 1. Calculate the required rate of return using the Capital Asset Pricing Model (CAPM). rating Current Stock Price Current Dividends 5-Year Avg. Dividend Growth Current Beta 1 $12.05 $0.95 0.65 0.65 2 $28.02 $0.00 -100 2.3 3 $17.75 $0.00 0 1.89 4 $92.43 $1.30 6.23 1.2 5 $63.79 $0.75 0.95 1.35 6 $2.88 $0.00 -8 1.05 7 $10.00 $0.00 0 1.78 8 $49.51 $0.68 0.75 0.95 9 $101.00 $5.00 0.38 0.92 10 $39.78 $0.00 -90 1.5 11 $29.75 $2.00 2.25 0.85 12 $73.09 $0.00 -1 0.38 13 $20.39 $6.00 5.25 0.71 14 $18.25 $0.00 0 1.2 15 $7.00 $1.35 8.85 0.73 Current Treasury Bond Rate 4.30% Average return on the Bond Market 11.90% 1. Calculate the required rate of return using the Capital Asset Pricing Model (CAPM).Explanation / Answer
Answer:
Required return=Rf+beta(Erm-Rf)
=4.30%+beta(11.90%-4.30%)
rating Current Stock Price Current Dividends 5-Year Avg. Dividend Growth Current Beta Required return 1 $12.05 $0.95 0.65 0.65 9.24% 2 $28.02 $0.00 -100 2.3 21.78% 3 $17.75 $0.00 0 1.89 18.66% 4 $92.43 $1.30 6.23 1.2 13.42% 5 $63.79 $0.75 0.95 1.35 14.56% 6 $2.88 $0.00 -8 1.05 12.28% 7 $10.00 $0.00 0 1.78 17.83% 8 $49.51 $0.68 0.75 0.95 11.52% 9 $101.00 $5.00 0.38 0.92 11.29% 10 $39.78 $0.00 -90 1.5 15.70% 11 $29.75 $2.00 2.25 0.85 10.76% 12 $73.09 $0.00 -1 0.38 7.19% 13 $20.39 $6.00 5.25 0.71 9.70% 14 $18.25 $0.00 0 1.2 13.42% 15 $7.00 $1.35 8.85 0.73 9.85%Related Questions
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