Assume the risk free rate is 8% and the expected rate of return on the market is
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Assume the risk free rate is 8% and the expected rate of return on the market is 16%. A share of stock is now selling for $75. It will pay a dividend of $5 per share at the end of the year. Its bets is .80.
What must investors expect the stock to sell for at the end of the year.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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