Analyze nestle csr initiative plan focuses on society issues
This is a CSR project, and choose to nestle as our company Note: Please give answer on mentioned words (must add intext citation) and required
The risk-free rate of return (rf ) is 2% and the expected market rate of return (rm) is 10%. The shares A, B and C all pay a dividend (D) of $6 a year. The betas for the three shares are βA = 0.75 and βB = 1.00 and βC = 1.25 . The three shares are trading at the same price (P) of $60. Requirements. Answer the following questions:
Problem 1: What are the expected returns on A, B and C?
Problem 2: What are the expected prices of A, B and C?
Problem 3: What action would you recommend for A?
Problem 4: What action would you recommend for B?
Problem 5: What action would you recommend for C?