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Shares in Seafun Safari are currently trading today, January 1, for $14.80 per share. Seafun's next dividend (on December 31st) is expected to be $0.82.
Shares in Seafun Safari are currently trading today, January 1, for $14.80 per share. Seafun's next dividend (on December 31st) is expected to be $0.82. You plan to sell your shares after the next dividend and expect to receive $15.53. Seafun's beta is 0.76, the expected return on the market is 8.7%, and T-Bills are expected to earn 4.2%. After comparing the anticipated holding period return to the equilibrium rate of return, you conclude that Seafun is a
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