Question
6.) ABC Company has a beta equal to that of the market and is selling for $110/ share. It will pay a dividend of $9.5
6.) ABC Company has a beta equal to that of the market and is selling for $110/ share. It will pay a dividend of $9.5 at the end of the year. What should the stock sell for at year end? Assume the rate on Treasury bonds is 8% and the expected return on the market is 16%.
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
