Use this information for the following 5 questions. You purchase 3000 shares of Ryans stock...
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Accounting
Use this information for the following 5 questions. You purchase 3000 shares of Ryans stock at a price of $50 per share. One year later, the shares are selling for $57 per share. In addition, a dividend of $2 per share was paid at the end of the year. 1. What is the total dollar return for the investment? 2. Calculate the percentage return on Ryans stock. If the stock had a beta of 1.6, and the market risk premium is 9%, what is the implied risk free rate of return? 3. What is the implied dividend growth rate in Ryans stock? 4. What is the implied cost of equity capital for Ryans stock? 5. Using all the information above, what is the implied risk premium for Ryans stock?
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