A share of stock sells for 40 today the beta of the stock


A share of stock sells for $40 today. The beta of the stock is 1.2, and the expected return on the market is 11 percent. The stock is expected to pay a dividend of $1.30 in one year. If the risk-free rate is 3.9 percent, what should the share price be in one year?

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Financial Management: A share of stock sells for 40 today the beta of the stock
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