Question
You obtained the following information for the Walmart stock: Market price per share at t=0, P0, is $50. Expected price per share at t=1, E(P1),
You obtained the following information for the Walmart stock:
Market price per share at t=0, P0, is $50.
Expected price per share at t=1, E(P1), is $56.
Expected dividend per share during this time period, E(D1), is $1.5.
RF=.05
Beta for the stock=.6
Market risk premium (RM-RF)=.08
Is the stock currently over- or under-priced?
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Elementary Statistics
Authors: Mario F. Triola
12th Edition
9780321836960
