Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 5 of 7
A company's required rate of return is 17.6%. An analyst expects the company to pay $14 in dividends next year. The company's stock is currently trading at $70 and is expected to fall to $68 by the year-end. The alpha of the company is
B. -0.5%.
C. 0.5%.
A. 0.
B. -0.5%.
C. 0.5%.
User Contributed Comments 0
You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
calculate and interpret the value of a common stock using the dividend discount model (DDM) for single and multiple holding periods;
CFA® 2025 Level II Curriculum, Volume 3, Module 21.