While the market had a return of 9 and the risk-free rate


1. You're analyzing the stock of a certain company. The most recent dividend paid was $9 dollars per share. The company's discount rate is 11%, and the firm is expected to grow at 3% per year forever. What should be the stock price today?

2. Over the last year you observe that a certain company had a stock return of 25%, while the market had a return of 9%, and the risk-free rate was 4%. What would be your estimate of the firm's beta?

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Financial Management: While the market had a return of 9 and the risk-free rate
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