1. Suppose Nabisco Corporation just issued a dividend of $2.52 per share yesterday. Subsequent dividends will grow at a constant rate of 3.13% indefinitely. If the required rate of return for this stock is 13.93% ,
What is the value of a share of common stock today?
2. A stock has an expected return of 9.69% and a standard deviation of 15.84%. Compute the following for this stock:
a) Upper range of 68% confindence interval :
b) Lower range of 68% confindence interval :
c) Upper range of 95% confindence interval :
d) Lower range of 95% confindence interval :
e) Upper range of 99% confindence interval :
f) Lower range of 99% confindence interval :