A stock that pays no dividends is currently priced at 40


A stock that pays no dividends is currently priced at $40 and is expected to increase in price to $45 by year end. The expected risk premium on the market portfolio is 6% and the risk-free is 5%.

If the stock has a beta of 0.6, the stock 

 

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Financial Accounting: A stock that pays no dividends is currently priced at 40
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