Problem:
In 2014, stock ABC pays $0.80 per share quarterly dividend and the dividend was $0.50 per share in 2008. The growth rate is 5.0%
Required:
Question 1: Find the beta for stock ABC.
Question 2: Find the current interest rate on a 6-month treasury bill.
Question 3: For the past 5 years, the stock went from $11,000 to $18,000. Calculate the expected return for stock based on CAPM?
Question 4: Based the closing price of stock ABC on 1/1/14, what is the yield of stock? Is this stock over-priced or underpriced?
Note: Could someone please give me a step by step solution?