Question
Stock D currently is selling for $40, and its beta is 1.4. It is expected to pay a dividend of $2 per share at the
Stock D currently is selling for $40, and its beta is 1.4. It is expected to pay a dividend of $2 per share at the end of the year. The risk-free rate is 5%, and the expected market return is 15%. What is the expected share price of D at the end of the year?
A. $37.4
B. $21.8
C. $45.6
D. $51.5
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Basic Finance An Introduction To Financial Institutions Investments And Management
Authors: Herbert B. Mayo, Michael J Lavelle
13th Edition
0357714741, 978-0357714744
