Question
A share of stock sells for $43 today. The beta of the stock is 1.5, and the expected return on the market is 19 percent.
| A share of stock sells for $43 today. The beta of the stock is 1.5, and the expected return on the market is 19 percent. The stock is expected to pay a dividend of $.60 in one year. If the risk-free rate is 4.2 percent, what should the share price be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Share price | $ |
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Financial Trading And Investing
Authors: John Teall
1st Edition
0123918804, 978-0123918802
