Assume the risk-free rate is 5 and the expected rate of


Assume that CAPM is valid. A share of stock is now selling for $115. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of return on the market portfolio is 14%. (Round your answer to 2 decimal places.)

Expected Selling Price is?

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Financial Management: Assume the risk-free rate is 5 and the expected rate of
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