Question 12 5 pts ed rate of return of 1025 and it sells for

Question 12 5 pts ed rate of return of 10.25%, and it sells for $59.50 per share. The dividend is expected to grow at a constant rate of A stock has a requir 6.00% per year. What is the expected year-end dividend, D? Your answer should be between 1.32 and 4.56, rounded to 2 decimal places, with no special characters. D Question 13 5 pts Phoenix Solar is expected to pay a dividend of $3.60 in the upcoming year, and their stock is trading in the market today at $60 per share. Dividends are expected to grow at the rate of 84% per year. If the risk free rate of return is 4% and the expected return on the market Your answer should be between 0.34 and 2.12, rounded to 2 decimal places, with no special characters. D Question 14 5 pts Kelso Corporation just paid a dividend of Do-$1.30 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company\'s beta is 170 the required return on the marketis 0.50% and the risk-freera teb4

Solution

Ans 12) Stock price = D1/(r - g)

59.5 = D1/(.1025 - .06)

D1 = 2.53

Ans 13) stock price = D1 / (r - g)

60 = 3.6/(r - .084)

r = 14.4%

r = risk free rate + beta * (market return - risk free rate)

14.4% = 4% + beta * (12% - 4% )

beta = 1.3