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37. (5 points) General Motors (GM) has a current share price of $25.00, a beta of 1.25, and a dividend yield of 6%. Suppose
37. (5 points) General Motors (GM) has a current share price of $25.00, a beta of 1.25, and a dividend yield of 6%. Suppose the Treasury bill yield is 5% and the market portfolio is expected to return 14%. What is the required rate of return on GM?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
