Question
The risk-free rate of return is 6% and the expected return on the market portfolio is 12%. FeelGood Inc. is expected to have a stock
The risk-free rate of return is 6% and the expected return on the market portfolio is 12%. FeelGood Inc. is expected to have a stock price of $19 at the end of this year and pay a dividend of $1.80 during the year as well. The beta of FeelGood's stock is 1.35. What is the fair price of the company at the beginning of the year?
A) 18.23 B) 18.57 C) 18.00 D) 17.65
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Public Finance In Theory And Practice
Authors: Holley Ulbrich
1st Edition
0324016603, 978-0324016604
