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The risk-free interest rate on i -year debt is 8 percent

Question: The risk-free interest rate on I -year debt is 8 percent, and the expected return on the market is 14 percent. A stock that pays no dividends currently sells for $10. What is the expected price at which the stock should sell at year-end if it has a beta of 1.3?

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Finance Basics: The risk-free interest rate on i -year debt is 8 percent

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Finance Basics: The risk-free interest rate on i -year debt is 8 percent

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