Please review this question it is answered in three questions. Please make sure it is correct I sometimes have to repeat the question.
1. Firm C Stock tends to be 30% more volatile vs. the General Market. The S & P 500 is expected to yield a 12% Rate of Return. If T-Bills yield a 2% ... Return, what is the Required Rate of Return on Stock C ?
2. Assume that Stock C above is expected to yield a 14% ... Return. Should one invest in Stock C ? Why or why not ?
3. Assume that Stock C above just paid a $ 4.00 Dividend Per Share. The Growth Rate for each of the next 3 years is 5% annually. Beyond Year 3, growth will level off at 2% per year indefinitely. What is the Stock Price for each share of Stock C ?