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You believe that a stock with the same market risk as the S&P/TSX will sell at year-end at a price of $50. The stock will
You believe that a stock with the same market risk as the S&P/TSX will sell at year-end at a price of $50. The stock will pay a dividend at year-end of $2. What price will you be willing to pay for the stock?
Hint: Start by checking today's three-month treasury bill rate.
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