Expected rate of return on the market


A share of stock is now selling for $130. It will pay a dividend of $6 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 4% and the expected rate of return on the market is 20%.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Expected rate of return on the market
Reference No:- TGS0672679

Now Priced at $5 (50% Discount)

Recommended (97%)

Rated (4.9/5)