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? A. $79.26 B. $22.22 C. $74.07 D. $20.76
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
