(1) Calculate the required return to KCC’s stock given that the risk-free rate is at 5%,...

(1) Calculate the required return to KCC’s stock given that the risk-free rate

is at 5%, the market risk premium is at 3% (or the expected market return at 8%),

and the beta of KCC. is at 1.2.

(2) KCC, Inc., paid a $10/share dividend in the last fiscal period and its net profits

are expected to grow at 5%. How much should KCC, Inc.’s stock trade per share?

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Expert Solution

jeff jeffy answered 1 year ago

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