Question
A share of stock sells for $48 today. The beta of the stock is 1.3, and the expected return on the market is 16 percent.
| A share of stock sells for $48 today. The beta of the stock is 1.3, and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $.70 in one year. If the risk-free rate is 4.7 percent, what should the share price be in one year? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Share price | $ |
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
