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Practice Problem 4 A share of stock with a = 0.7 now sells for $45. Investors expect the stock to pay a year-end dividend of
Practice Problem 4 A share of stock with a = 0.7 now sells for $45. Investors expect the stock to pay a year-end dividend of S2 and to sell for $50 at year-end. The T-bill rate is 4%, and the market return is 14%. Is this stock a good or bad buy
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