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Assume the risk - free rate is 8 % and the expected rate of return on the market 1 6 % . A share of

Assume the risk-free rate is 8% and the expected rate of return on the market 16%. A share of
stock is now selling for $75. It will pay a dividend of $5 per share at the end of the year. Its
beta is 0.80. What must investors expect the stock to sell for at the end of the year?

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