This topic contains a solution. Click here to go to the answer

Author Question: The next dividend on Sciorra stock is expected to be 3.10 per share. Dividends are expected to grow ... (Read 119 times)

leo leo

  • Hero Member
  • *****
  • Posts: 566
The next dividend on Sciorra stock is expected to be 3.10 per share. Dividends are expected to grow at a constant rate of 5 indefinitely. What should the current share price be if Sciorra investors require a return of 15?
 
  A) 32.55
  B) 31.00
  C) 20.67
  D) 21.70
  E) 62.00

Question 2

The expected return on the market is 10, the risk free rate is 5 and Black Magic Cosmetics Inc. has a beta of -1. What is the expected return for Black Magic Cosmetics Inc.?
 
  A) -10
  B) -5
  C) 0
  D) 5
  E) 7.5



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joewallace

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

B

Answer to Question 2

C




leo leo

  • Member
  • Posts: 566
Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

For a complete list of videos, visit our video library