NU Corporation has a Beta of 0.9. The required return of a market portfolio is...
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NU Corporation has a Beta of 0.9. The required return of a market portfolio is 8%. The risk-free rate is 3%. NU Corp. is expected to pay the following dividends over the next four years: $20, $0, $15, and $5 In the fourth year, the estimated payout ratio is 25% and the benchmark PE ratio is 15. What is the current share price of NU stocks? (Hint: estimated payout ratio = Dividend/EPS, Price = PE*EPS)
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