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6.) A firm has a beta of 0.80. Currently, the risk-free rate in the economy is 2.25%, while the market portfolio risk premium is
6.) A firm has a beta of 0.80. Currently, the risk-free rate in the economy is 2.25%, while the market portfolio risk premium is 5.50%. The firm's stock has a price of $12.00 today. If the stock earns its required return this year, what will the selling price be in exactly one year? (assume it pays no dividend)
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The required return of the stock can be calculated using the Capital A...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
