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Facebook has gone public by issuing equity. As an analyst for a bank, you've estimated that the company will have a Beta of 1.2. You
Facebook has gone public by issuing equity. As an analyst for a bank, you've estimated that the company will have a Beta of 1.2. You know that Facebook just gave a dividend of $4.00 per share. You anticipate the dividend to grow at a rate of 10% per year. The risk-free rate is 2% and the average return of the market is 13%. Expected Retrurn= 15.20%
What is the expected price TODAY of Facebooks stock?
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