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urgent!!! Asonica, Andre & Bryan's Inc. is projected to pay dividends of $2, $3...

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Accounting

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urgent!!!

Asonica, Andre & Bryan's Inc. is projected to pay dividends of $2, $3 and $2 for the next three years. The dividends are expected to grow at 6% per year thereafter into perpetuity. If you require a return of 8%, determine the maximum you should pay for this stock. (Give your answer to 2dp i.e $xxx.xx) (5 marks) Answer: Asonica, Andre & Bryan's Inc. has a risk free rate of 5% and a market risk premium of 8%. The company's portfolio consist of the following assets. 0 Assets Beta Investments X 4 150M Y 3.5 350M Determine the stockholder's required rate of return (Give your answer as a percentage la 2dp i.e xx.xx%). (4 marks) Answer: Using the information from the question above, determine the company's risk premium (Give your answer as a percentage to 2dp i.e. xx.xx%). (1 mark) ered

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