Question
A share of stock with a beta of 0.73 now sells for $48. Investors expect the stock to pay a year-end dividend of $4. The
A share of stock with a beta of 0.73 now sells for $48. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 6%, and the market risk premium is 9%. If the stock is perceived to be fairly priced today, what must be investors' expectation of the price of the stock at the end of the year?
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Global Marketing management
Authors: Masaaki Kotabe, Kristiaan Helsen
5th edition
978-0470505748
