Solved

Sure Tool Company Is Expected to Pay a Dividend of $2

Question 44

Multiple Choice

Sure Tool Company is expected to pay a dividend of $2 in the upcoming year.The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%.Analysts expect the price of Sure Tool Company shares to be $22 a year from now.The beta of Sure Tool Company's stock is 1.25. The market's required rate of return on Sure's stock is


A) 14.0%.
B) 17.5%.
C) 16.5%.
D) 15.25%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions