What investors expect stock to sell for at the end of year


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%.

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Finance Basics: What investors expect stock to sell for at the end of year
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