The firm beta is under a bad management such that the, Ask an Expert

Economics

The firm, Beta, is under a bad management such that the dividend payment is expected to decrease at a rate of 4% per year. Suppose the recent dividend payment is $3 per share and the stock price is $30.

(1) What is the required return of the stock?

(2) If nothing else happens what is your expectation about the stock price next year? What is the trend of stock prices over time?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91389053

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