Question
A share of stock with a beta of .83 now sells for $58. Investors expect the stock to pay a year-end dividend of $3. The
| A share of stock with a beta of .83 now sells for $58. Investors expect the stock to pay a year-end dividend of $3. 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? |
| Stock price | $ |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
