Chapter 4 Solutions m(5, 8, 9, 14, 19, and 23)

Heavy Tech Company has a current beta of 1.2 with a stock return variance (σ2) of 50%. The stock is selling for $50, down $4 from last year. The company paid a $2 dividend last year and will (expected) pay a $2.50 dividend this coming year. The tax rate is 40% for the company. The variance of the market for this same period is 20%. ................
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