The current risk free rate is 2 while the market risk, Financial Management

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The current risk free rate is 2 while the market risk

1. A stock just paid a dividend of 2.00(D0) today. Dividends will grow 4% annually. The current risk free rate is 2% while the market risk premium is 6%. If the stock has a beta of 1.36. What’s the stock intrinsic value?

2. A company has a beta of .98. If the market return is expected to be 10.3 percent and the risk-free rate is 3.15 percent, what is the company's required return?

3. An ABX stock sells for $50. The dividend is $8.00 will remain forever. What’s the market discount rate?

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