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Price of the Stock Change Assignment | Homework For You

An analyst overestimated the beta of SeaPac during his analysis. He assigned a beta of 2, when the beta is actually 1.5. If the stock pays a $50 annual dividend, by how much is the analysts overestimating or underestimating the price of the stock?Homework For You You’ll need to know the risk free rate is 2.0% and the expected return o the market is 10%. Please account for this difference in price. Why did the price of the stock change just because beta changed? (6 points) Over/Under-estimate = $. Get Finance homework help today

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