Question
The risk free rate is 6%, the expected rate of return on the market portfolio is 8%. Cure-Covid Corp (CCC) is selling for $80 in
The risk free rate is 6%, the expected rate of return on the market portfolio is 8%. Cure-Covid Corp (CCC) is selling for $80 in the market right now. You estimate that CCC's dividends will grow at 2.5% a year indefinitely. CCC's earnings in one year are expected to be $20 and CCC pays out 60% of its earnings as dividends. What is the beta of CCC?
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Financial Accounting Theory
Authors: Craig Deegan, H. Bierman
4th Edition
9780071013147
