Question
The beta of a company's stock is 1.5. Its share price and dividend next year are expected to be $110 and $5, respectively. Suppose that
The beta of a company's stock is 1.5. Its share price and dividend next year are expected to be $110 and $5, respectively. Suppose that the risk-free rate is 3% and the market risk premium is 7%. What is the current price of the company's stock?
A.$96.92
B.$101.32
C.$105.50
D.$111.65
E.$120.97
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Get StartedRecommended Textbook for
Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
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