1. A stock is expected to pay a dividend of $2.00 each year for the next 3 years, after that the dividend is expected to grow at a constant rate of 8% per year forever. The stock s required rate of return is 10%. What is intrinsic value of the stock today?
$78.74
$108.00
$21.20
None of these
$86.12
2. What is expected beta of a national chain of home goods stores?
Between 0 and 1
Not enough information given
Near 1
Greater than 1
Near 0