Question
A share of stock is expected to sell for $100 and pay a dividend of $2 at the year's end. What is the fair price
A share of stock is expected to sell for $100 and pay a dividend of $2 at the year's end. What is the fair price of the stock today if its beta is 1.26? Assume that the risk-free rate is 0.04 and the expected risk premium on the market is 0.14%.
Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
