Question
Consider the following information: Market Risk Premium 6% Risk-Free Rate 2% PGA Corporation stock price $28 PGA Corporation Dividend 0 $2.35 PGA Corporation Dividend growth
Consider the following information:
Market Risk Premium 6%
Risk-Free Rate 2%
PGA Corporation stock price $28
PGA Corporation Dividend0 $2.35
PGA Corporation Dividend growth rate 4%
By how much will the per share stock price of PGA Corporation drop if its Beta increases by 50%?
$10.66
$8.33
$10.71
$11.34
$12.33
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
