CFP Practice Test 8

10 free CFP practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CFP Practice Test 8Tutor mode

Question 1 of 10

Investment Planning

Graham is valuing a stock that just paid an annual dividend of $2.00. Dividends are expected to grow 5% a year indefinitely. The stock's beta is 1.2, the risk-free rate is 4% and the expected market return is 9%. What is the stock's intrinsic value?