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A share of stock with a beta of 070 now sells for $60. Investors expect the stock to pay a year-end dividend of $4 The

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A share of stock with a beta of 070 now sells for $60. Investors expect the stock to pay a year-end dividend of $4 The T-bill rate is 5%, and the market riskpremium is 8% 0. Suppose investors believe the stock will sell for $62 at year-end. Calculate the opportuntly cost of capital is the stock a good or bad buy? What will investors do? (Do not round intermediate calculations. Round your opportunity cost of capital calculation as a percentoge rounded to 2 decimal ploces.)

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