1. A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow at 6% per year. If the investor’s required return is 14%, what is the anticipated value of the firm at the end of 3 years?
2. A company is expected to pay $1.75 in annual dividends next year. If the anticipated annual growth rate is 4% and the current price of the stock is $25 per share, what is the expected return on this stock?
A portfolio has a standard deviation of 22%. If the risk-free rate is 3.5%, the expected return on the market portfolio is 12%, and the standard deviation of the market portfolio is 25%, the required return on the market portfolio is