easy questions

Business & Finance
Tutor: None Selected Time limit: 1 Day

1. Porter Inc's stock has an expected return of 10.75%, a beta of 1.25, and is in equilibrium.  If the risk-free rate is 5.00%, what is the market risk premium?

2. Whited Inc.'s stock currently sells for $35.25 per share.  The dividend is projected to increase at a constant rate of 4.50% per year.  The required rate of return on the stock, r, is 11.50%.  What is the stock's expected price 5 years from now?

Jul 21st, 2015

Thank you for the opportunity to help you with your question!

  According to  CAPM we know that    

Re = Rf + Beta *Rm  ; 10.75 = 5 + 1.25 * Rm 

solving we get , Rm = 5.75/1.25 = 4.6 % (Answer)

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Post it again question number 2 (Its  a bit long question )   I can solve it for $ 2
method : Find Do : using Stock price = Do/(r-g)
then find 5 dividend using growth factor 4.5% and then use formula Sum for 5 years  (Using Goroden formula )
(Invite me I can solve it )
Please find the solution enclosed here with. In case of any doubt please feel free to ask … If you need help in any assignment of math/ science … any online exam / discussion, Please contact for quick & quality services.
Jul 21st, 2015

Thanks, I did the second by myself. And could you help me write an assignment for my Financial management class? I can post it to a paid question and ask you directly

Jul 21st, 2015

please post it as paid question ... but is it ok for you that I will reply within 12 hours ?

Since now its my sleeping time !!

Jul 21st, 2015

Lol, I has already posted it, and there is a guy had already bid it. Let's cooperate next time. Have a good night!

Jul 21st, 2015

sure no problem ... remember me for quality services in Finance and mathematics


Jul 21st, 2015

Got it. 

Jul 21st, 2015

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