QUIZ PROBLEM #2 Instructions:  Type your answers to th…

QUIZ PROBLEM #2 Instructions:  Type your answers to the following questions in the textbox below. Label each answer by its part:  A or B. Show all work on your “work” pages.  Label which problem it is (#2). Reminder:  Values for constants are listed in the provided Conversions and Constants to Memorize document.   Questions: A particular photon has a wavelength of 15.43 picometers. A.  What is the frequency of this photon? B.  What is the energy of this photon?

Saban Enterprises’ beta is 1.1 and its dividend growth rate…

Saban Enterprises’ beta is 1.1 and its dividend growth rate is 13.35%, just yesterday, it paid a dividend of $1.33.  Today’s share price is $55.00.  You believe that today’s share price equals today’s intrinsic value.  Furthermore, you believe that the share price moves in accordance with the dividend constant growth model.  The economy wide risk free interest rate is 2.5% and the expected risk premium for the market portfolio is 6.5%.  You believe that the stock represents a good investment if the expected total return implied by the dividend constant growth model exceeds the required rate of return implied by the Capital Asset Pricing Model.  What is the required rate of return and expected rate of return for the stock?  Should you buy it; why or why not?  Should show all work.