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30.03.2020 •
Business
Big Cola Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company’s beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is the company’s current stock price,
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Ответ:
Explanation:
Given that,
Risk free rate = 4%
Beta = 1.15
Market risk premium = 5%
Paid dividend per share = $0.75
Required rate of return:
= Risk free rate + (Beta × Market risk premium).
= 4% + (1.15 × 5 % )
= 4% + 5.75 %
= 9.75 %
Current stock price:
= Expected dividend per share ÷ (Required rate of return - Growth in dividends)
= [0.75(1 + 0.055)] ÷ (0.0975 - 0.055)
= 0.79125 ÷ 0.0425
= $ 18.62 (approx).
Ответ:
1) similarities
2) descent from a common ancestor
3)A,C,D
Explanation:
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