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A share of stock with a beta of 0 . 7 4 now sells for $ 5 0 . Investors expect the stock to pay

A share of stock with a beta of 0.74 now sells for $50. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 5%, and the market risk premium is 8%.
Suppose investors believe the stock will sell for $52 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? What will investors do?
At what price will the stock reach an equilibrium at which it is perceived as fairly priced today?

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