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5 - assume that the risk - free rate of interest is 6 % and the expected rate of return on the market is 1

5- assume that the risk-free rate of interest is 6% and the expected rate of return on the market
is 16%. A share of stock sells for $50 today. It will pay a dividend of $6 per share at the
end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of
the year?
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