Question
A stock has a beta of 1.2, the riskless rate is 0.03 and the market premium is 0.070. The stock will return a $3 as
A stock has a beta of 1.2, the riskless rate is 0.03 and the market premium is 0.070. The stock will return a $3 as dividend for 20 years (starting a year from now) and after that nothing (firm will liquidate). What is the price of the stock?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
