Question
Thames Inc.'s most recent dividend was $2.40 per share. The dividend is expected to grow at 6% per year. The T-bill rate is 5% and
Thames Inc.'s most recent dividend was $2.40 per share. The dividend is expected to grow at 6% per year.
The T-bill rate is 5% and the market return rate is 9%.
The company's beta is 1.3.
What should be the expected price of the stock one year later?
Select one:
a.$64.21
b.$72.14
c.$60.57
d.$57.14
e.$68.06
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
