Question
An investor purchased Google stock this morning for $892.00. Google stock has a beta of 1.40. The current risk free rate is 3.00%, while the
An investor purchased Google stock this morning for $892.00. Google stock has a beta of 1.40. The current risk free rate is 3.00%, while the historical market portfolio risk premium is 6%. If CAPM holds for Google, what should Google sell for in one year? (Assume that Google will not pay a dividend in the coming year)
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
