Question
Goodie Mob Corp. will pay a year-end dividend of $2, and dividends thereafter are expected to grow at the constant rate 2% per year. The
Goodie Mob Corp. will pay a year-end dividend of $2, and dividends thereafter are expected to grow at the constant rate 2% per year. The risk free rate is 1%, and the expected return on the market portfolio is 12%. If Goodie Mob stock has a beta of 0.75, its price should be __________. If Goodie Mob is trading at $100, you should take a ___________________ position in the stock. WHY?
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The Financial Crisis Implications For Research And Teaching
Authors: Ted Azarmi, Wolfgang Amann
1st Edition
3319205870, 978-3319205878
