Assume the risk free rate is 6percentage and the market risk premium is 6 percentages. The stock of physician care network is (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share.
a. What would be PCN’s stock value be if the dividend was expected to grow at a constant; -5%,0%5% 10%
b. what would be the stock value if the growth rate is 10 percentage, but PCN’s beta falls to 1.0,0.5?