If the company beta is 08 and the market is in equilibrium


Mining has seen its business slowly wind down. It recently paid a dividend of $1.80 per share, but analysts expect the dividend to decrease by 6% per year. The risk-free rate is 4.0% and the market risk premium is 5.0%. If the company beta is 0.8 and the market is in equilibrium, what is the value of its stock? $11.79 $10.90 $12.09 $13.97 $16.04

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Financial Management: If the company beta is 08 and the market is in equilibrium
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