Question
Fools Gold Mining Company is expected to pay a dividend of $8 in the upcoming year. Dividends are expected to decline at the rate of
Fools Gold Mining Company is expected to pay a dividend of $8 in the upcoming year. Dividends are expected to decline at the rate of 2% per year. The risk-free rate of return is 6% and the expected risk-premium on the market portfolio is 8%. The stock of Fools Gold Mining Company has a beta of -0.13. The return you should require on the stock is
A.5%
B.4%
C.6%
D.2%
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
