Question
A share of stock sells for $46 today. The beta of the stock is 1.4, and the expected return on the market is 11 percent.
A share of stock sells for $46 today. The beta of the stock is 1.4, and the expected return on the market is 11 percent. The stock is expected to pay a dividend of $1 in one year. If the risk-free rate is 4 percent, what will the share price be in one year?
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
