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XYZ stock is expected to be priced at $43.78 in 1 year. It is expected to pay its next dividend, which is expected to be
XYZ stock is expected to be priced at $43.78 in 1 year. It is expected to pay its next dividend, which is expected to be $1.61, in 1 year. The stock has a beta of 0.87. The market has an expected return of 14.96%, the risk-free rate is 4.37%, and the inflation rate is 2.74%. What is the current price of XYZ stock? a. $41.56 (plus or minus $0.10) b. $38.67 (plus or minus $0.10) C. $41.04 (plus or minus $0.10) d. $39.96 (plus or minus $0.10) e. None of the above is within $0.10 of the correct
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