Question
The risk-free rate of return is 4%, the required rate of return on the market is 12%, and High-Flyer stock has a beta coefficient of
| The risk-free rate of return is 4%, the required rate of return on the market is 12%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.40 and g = 4%, at what price should a share sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Share price | $ |
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Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 978-0138596873
