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A stock has a Beta value of 0.9. The risk-free interest rate is 3% and the market interest rate is 10% a) What is a
A stock has a Beta value of 0.9. The risk-free interest rate is 3% and the market interest rate is 10%
a) What is a reasonable required rate of return to put on this stock investment. Show your calculations
b) Use the required return you have calculated in a and determine the stock price given that 60% of the profit is distributed to the owners. Assume that the share price is $ 200 per share. View your calculations.
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