Question
Assume that CAPM is valid. A share of stock is now selling for $90. It will pay a dividend of $10 per share at the
| Assume that CAPM is valid. A share of stock is now selling for $90. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of return on the market portfolio is 18%. (Round your answer to 2 decimal places.) |
| Expected selling price | $ |
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Passive Income Stacking Handbook How To Reach Financial Freedom Faster Regardless Of Your Age Or Situation
Authors: Mark Walters
1st Edition
0578530171, 978-0578530178
