Question
Yum bakery's common stock has a beta of 0.8. The expected return on the market is 15% and the risk free rate is 3%. The
Yum bakery's common stock has a beta of 0.8. The expected return on the market is 15% and the risk free rate is 3%. The bakery expects to pay a constant dividend of $2.1 every year forever. What should the price of the common stock be?
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
