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Suppose you are interested in investment of Mike Incs stock for one year. The stock price is $90. You also know that the company will
Suppose you are interested in investment of Mike Incs stock for one year. The stock price is $90. You also know that the company will payout a cash dividend $1.5 per share at the end of the year. What will be the expected stock price of Mike Inc.s at the end of year? (Assume the risk-free rate is 4%, the expected rate of return of the market index is 6%, the companys beta is 1.2).
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