Greystone Inc. plans to pay a $4.30 dividend during the upcoming year, and dividends are expected to grow at the rate of 8% per year. The risk free rate is 6% and the expected return on the market portfolio is 12%. The current price of the stock is $85. What is the estimated beta of Greystone, Inc.

Beta = 1.18

Explanation:

The computation of the beta is shown below:

But before that we need to calculate the following calculations

Current stock price = D1 ÷ (Required rate of return  - growth rate)

$85 = $4.30 ÷ (Ke - 0.08)

(Ke - 0.08) = 0.0506

Ke = 0.1306

= 13.06%

Now

Expected rate of return(Ke) = Risk free rate + Beta × (Market rate of return - Risk free rate of return)

13.06% = 6% + Beta × (12% - 6%)

13.06% = 6% + Beta × 6%

So, the  Beta = 1.18

idk

explanation:

idk

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi