Current stock price of XYZ is $1,000. The market expects the price will be $1,700 in 3 years. What should be the return over the next two years if return is continuously compounded?

What would be the price of a stock that pays an annual fixed dividend of $1.2 for ten years, and then the dividend payment increases by 1% every year, and the required rate of return is 5% annually

Consider the following two stocks: Stock A is expected to provide a dividend of $10 for 15 years. After that, the dividend will grow at a rate of 2% forever. Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 3% per 20 years and zero therafter. If the rate r at which dividends are discountd is r= 9%, which stock is the most valuable? What if the capitalization rate is 6%

A stock price P0=$23, and is expected to pay D1 = $1.242 one year from now and to grow at a constant rate of g=8% in the future.  Suppose this analysis was conducted in January 1, 2002, what is the expected price at the end of 2002 and what is the Capital gains yield?

The​ risk-free rate is 3.7% and you believe that the​ S&P 500's excess return will be 11​% over the next year. If you invest in a stock with a beta of 1 ​(and a standard deviation of 30​%), what is your best guess as to its expected excess return over the next​ year?       Question content area bottom Part 1 The expected excess return over the next year is enter your response here ​%. ​(Round to two decimal​ places.)

Suppose Carol's stock price is currently $20. If the standard deviation of the continuously compounded returns (σ) on a stock is 60 percent per year. The annual risk-free rate is 12%, compounded every 6 months. A. Using one-step binomial tree, what is the current value of a six-month call option with an exercise price of $25?B. Using two-step binomial tree, what is the current value of a one-year put option with an exercise price of $25?

Investors expect the market rate of return this year to be 17.00%. The expected rate of return on a stock with a beta of 0.9 is currently 15.30%. If the market return this year turns out to be 15.00%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

What would be the price of a stock that pays an annual fixed dividend of $1 for ten years, and then the dividend payment increases by 1% every year, and the required rate of return is 5% annually?

The price of a stock is currently $37.         Over the next half year, the price is anticipated to rise to $42 or decline to $36. The upside has a 60% probability of occurring. The risk-free interest rate is 5% p.a.. What is the price of a six month call option with an exercise price of $38?

You buy a stock for $20. After a year the price rises to $25 but falls back to $20 at the end of the second year. What was the average percentage return and what was the true annualized return?