Emmy Lou, Inc. has an expected dividend next year of 5.60 per share, a growth rate of dividends of 10 percent, and a required return of 20 percent. The value of a share of Emmy Lou, Inc.'s common stock is ________.
A) 28.00
B) 56.00
C) 22.40
D) 18.67
Question 2
Peter Lynch has the following portfolio of investments:
Stock Investment Beta
A 21 million 0.945
B 42 million 1.47
C 11 million 2.10
D 32 million 1.26
What is the beta of Peter's portfolio?
A) 1.000
B) 1.126
C) 1.366
D) 1.534
E) 1.877