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Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 13%. A share of stock sells
Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 13%. A share of stock sells for $60 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 1.4. What do investors expect the stock to sell for at the end of the year ? Looking for expected stock price. |
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