1. Suppose the stock has a beta of 3.15, the risk-free rate is 6% per year, and the expected rate of return on the market portfolio is 21% per year, then what is the required rate of return on IBX stock?
What is the intrinsic value of IBX stock, and how does it compare to the current market price?
2. If an investor were to buy IBX stock now and sell it after receiving the $2.15 dividend a year from now, what is the expected capital gain in percentage terms?
If ROE is 28% and b is 80%, then what is g?