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Assume the risk free rate is 8% and the expected rate of return on the market is 16%. A share of stock is now selling
Assume the risk free rate is 8% and the expected rate of return on the market is 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 bets is .80.
What must investors expect the stock to sell for at the end of the year.
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
