Question
A stock with a beta of 0.8 just paid a dividend of $1.10 and is priced at $35. If the risk-free rate is 2% and
A stock with a beta of 0.8 just paid a dividend of $1.10 and is priced at $35. If the risk-free rate is 2% and the market risk premium is 6%, what is the expected growth rate for the stock?
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A. 2.06%
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B. 3.66%
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C. 3.55%
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D. 1.99%
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
