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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 now sells for $ Investors expect the stock to pay a yearend dividend of $ The Tbill rate is and the market risk premium is
Suppose investors believe the stock will sell for $ at yearend. 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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