A share of stock with a beta of 70 now sells for 45


A share of stock with a beta of .70 now sells for $45. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 5%, and the market risk premium is 8%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year?

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Financial Management: A share of stock with a beta of 70 now sells for 45
Reference No:- TGS01367196

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