Assume the stock is expected to pay a constant dividend in


The market price or a security is $34. Its expected rate or return is 8% The risk-free rate is 4%, and the market risk premium is 9% What will the market price or the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity (Round your answer to 2 decimal places.) Market price $ __________

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Financial Management: Assume the stock is expected to pay a constant dividend in
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