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assume that CAPM is valid. A share of stock is now selling for $140. It will pay a dividend of $5 per share at the

assume that CAPM is valid. A share of stock is now selling for $140. It will pay a dividend of $5
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 20%. (Note: Round your answer to 2 decimal places, e.g. $170.56)

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