Question
A share of stock sells for $54 today. The beta of the stock is 1.3, and the expected return on the market is 10 percent.
A share of stock sells for $54 today. The beta of the stock is 1.3, and the expected return on the market is 10 percent. The stock is expected to pay a dividend of $1 in one year. If the risk-free rate is 4.8 percent, what will the share price be in one year?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
