1. How do you determine market price per share of common stock?
2. Consider a three period binomial model (one initial date and two steps) as in class. Let the initial stock price be $100. Let the upward increments be.
3. What is the Market expected return and Risk Premium based on the following data
common stock risk premium= 11.00 %
risk-free return = 4.00%
Beta = 1.0.