We found the Beta of AB 217 Corp = 0.85
SO
CAPM = Rf + Beta(RM - Rf) r = Question 1

This will be the "r" value that is used in the CGM.

Estimate the value of "g" ... the constant growth rate ..

Calculate the Dividend Growth Rate of AB 217 for Constant Growth Model (CGM)
We use actuall AB 217 history

PV ($1.20) Dividend paid 6 years ago. Negative so Excel can do the math
FV $1.55 Dividend paid this year = Do)
n 6
PMT 0
Rate This will be the Dividend Growth Rate ... = g Question 2

... who is interested in a required rate of return... portfolio recommendation backed by risk-return calculations ... Part I Determine the expected returns and beta for a ...

... b. What are the expected dividend growth rates for each firm ... on two stocks, both of which have discount rates of 15 percent: Stock A Stock B Return on equity ...

... Yield = Dividend/Price= 1.64/27 = 6.07% Total expected rate of return... what must be the growth rate they expect of the ... is .4, what must be the rate of return...

... c. What is the dividend yield, capital gains yield, expected rate of return of the ... You expect the dividend to grow steadily at a rate of 4 percent per year. ...

... What would you expect to be the price of this stock ... Dividend=Do=$3.50 Growth Rate=g=4% Required rate of return... D1=Do*(1+g)=3.50*(1+4%)=$3.64 Expected Price=Po=? ...

... $3.00 per share every year, and it expects to do ... this investment is 17% ,what should you expect to pay ... Dividend in current year=$3.25 D1=Expected dividend next ...

... the minimum rate of return that they expect of my ... cost of equity, RRF - Risk free rate of return... the other hand even though the expected returns from McDonald's ...

... 3 and 4, and then return to a constant growth rate assumption of ... The required return on the stock is 18 percent ... Calculate the current expected price of the stock ...