Question
Company B expects to pay a dividend of $12 next year, which they expect to grow at 3% per year. The beta for company is
Company B expects to pay a dividend of $12 next year, which they expect to grow at 3% per year. The beta for company is 1.5, the risk-free rate is 2%, and the market risk premium is 4%. What is the price for one share of stock?
| $240 | ||
| $160 | ||
| $87.5 | ||
| $63.6 |
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
