Question
You find a stock with a beta of 1.3 that just paid a dividend of $1.45 that is expected to grow at 5%. If the
You find a stock with a beta of 1.3 that just paid a dividend of $1.45 that is expected to grow at 5%. If the risk-free rate is 3% and the market risk premium is 8%, what should be the price of the stock in four years?
A. $20.98
B. $22.03
C. $18.13
D. $41.12
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
