The stock has a beta of 125 the risk-free rate is 4 percent


A stock that currently trades for $50 per share is expected to pay a year-end dividend of $3 per share. The dividend is expected to grow at a constant rate over time. The stock has a beta of 1.25, the risk-free rate is 4 percent, and the market risk premium is 5 percent. What is the stock's expected price six years from today?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The stock has a beta of 125 the risk-free rate is 4 percent
Reference No:- TGS0615089

Expected delivery within 24 Hours