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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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
