A stock has the following data: o Current cash flow per share: $ 12 o Growth rate for the next three years: 40% o Long term growth rate after 3 years : 1.5% o It will pay a dividend 20% of cash flow in yr 4. o The current risk free rate=0.64%; Return of the market = 10% o The stock's beta =0.09 Using the above data and CAPM to calculate its stock price. Don't copy the answer it already posts, thank you.

A stock has the following data: o Current cash flow per share: $ 12 o Growth rate for the next three years: 40% o Long term growth rate after 3 years : 1.5% o It will pay a dividend 20% of cash flow in yr 4. o The current risk free rate=0.64%; Return of the market = 10% o The stock's beta =0.09 Using the above data and CAPM to calculate its stock price. Don't copy the answer it already posts, thank you.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 22P

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