Question
The market expected return is 14 percent with a standard deviation of 18 percent. The risk-free rate is 6 percent. Security XYZ has just paid
The market expected return is 14 percent with a standard deviation of 18 percent. The risk-free rate is 6 percent. Security XYZ has just paid a dividend of $1 and has a current price of $13.95. What is the beta of Security XYZ if its dividend is expected to grow at 6 percent per year indefinitely?
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
