A stock is selling for $100 in the market. The company’s beta is 1.6, the market risk premium (rM – rF) is 5%, and the risk-free rate is 3%. The most recent dividend paid is D0 = $1.0 and dividends are expected to grow at a constant rate g. What’s the required rate of return by common shareholders?Selected Answer: 6.0%Answers:5.0%6.0% 11.0%12.0%Question 470 out of 5 pointsUsing the information from Question 46, what’s the dividend growth rate g for this stock? ______Selected Answer: 8.32%Answers:8.32%9.31%9.69% 9.90%Question 480 out of 5 pointsUsing the information from Question 46 and 47, calculate the stock’s expected dividend yield. ______Selected Answer: 2.22%Answers:0.82% 1.10%2.22%3.70%
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