Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A share of stock sells for $64 today. It will pay a dividend of $2 per share at the end of the year. Its beta is 1.0. What do investors expect the stock to sell for at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected stock price

Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A share of stock sells for $64 today. It will pay a dividend of $2 per share at the end of the year. Its beta is 1.0. What do investors expect the stock to sell for at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected stock price

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 11P

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