Financial analysts forecast GDY Inc.’s growth for the future to be 8%. GDY's recent annual dividend was $6.00. What is the value of GDY stock when the required return is 11%?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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9. Financial analysts forecast GDY Inc.’s growth for the future to be 8%. GDY's recent annual dividend was $6.00. What is the value of GDY stock when the required return is 11%?
Stock Value: $ ___________


10. Portfolio Return Year-to-date, Company X had earned a +8% return. During the same time period, Company Y earned +10% and Company Z earned – 6% (negative 6%). If you have a portfolio made
up of 30 percent Company X, 25 percent Company Y, and 45 percent Company Z, what is your portfolio return?
_____________%


11. You hold the positions in the table below.
COMPANY PRICE # SHARES BETA
Goodmonth $25.00 200 + 3.0
Icestone $20.00 750 – 1.0
Bridgerock $50.00 600 + 2.0
A. What is the beta of your portfolio?

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