Question
A stock has a beta of 1.51, the risk-free rate is 1.99% and the market premium is 2.28%. The stock will pay a $2.51 as
A stock has a beta of 1.51, the risk-free rate is 1.99% and the market premium is 2.28%. The stock will pay a $2.51 as dividend for 25 years (starting a year from now) and after that nothing (firm will liquidate). What is the price of the stock?
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The Global Financial Crisis What Have We Learnt
Authors: Steven Kates
1st Edition
0857934228, 978-0857934222
