You are considering buying the stock of Strava Corporation a…

You are considering buying the stock of Strava Corporation at its current market price of $60 since its valued at $40. Based on historical performance, you expect earnings and dividends to grow at a constant rate of 5%. You would require a return of 10% based on a beta of 1.4. The stock just paid a dividend of $4 based on recent accounting statements. What is your expected return if you purchase the stock today? (4)  

Find the expected return for the following investment. (4) U…

Find the expected return for the following investment. (4) Use a probability of 20% if you are unsure of the probability of a recession. ONLY use this number if you do not know how to calculate the missing probability.   State Of the World Probability Return Recession ??? -8% Average 40% 6% Boom 50% 22%