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Q14) An analyst gathered the following information for a stock and market parameters: stock beta = 1.430; expected return on the Market = 11.00%; expected
Q14) An analyst gathered the following information for a stock and market parameters: stock beta = 1.430; expected return on the Market = 11.00%; expected return on T-bills = 2.30%; current stock Price = $5.49; expected stock price in one year = 58.74; expected dividend payment next year = 51.09. Calculate the a) Required return for this stock (1.25 points): b) Expected return for this stock (1.25 points)
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