Question
A stock has a beta of 1.6, the riskless rate is 0.03 and the market premium is 0.060. The stock will return a $3 as
A stock has a beta of 1.6, the riskless rate is 0.03 and the market premium is 0.060. 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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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
13th edition
1259444953, 978-1259444951
