Given the Following Information,calculate the Expected Capital Gains Yield for Chicago

question 102

Multiple Choice

Given the following information,calculate the expected capital gains yield for Chicago Bears Inc.: beta = 0.6;r_M = 15%;r_RF = 8%; = $2.00;P₀ = $25.00.Assume the stock is in equilibrium and exhibits constant growth.

• A) 3.8%
• B) 0%
• C) 8.0%
• D) 4.2%
• E) None of the above.

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