Question
A stock with a beta of 1.4 will pay a dividend of $2 next year that is expected to grow at 7%. If the risk-free
A stock with a beta of 1.4 will pay a dividend of $2 next year that is expected to grow at 7%. If the risk-free rate is 2% and the market risk premium is 5.5%, what is the most you would be willing to pay for the stock today?
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
