What is the maximum price at which you are willing to


Suppose Fly-by-Night shipping originally is expected to sell for $80 per share in one year, and they are offering no dividends. You realize that this shipping company is very risky and require a 8% risk premium in addition to your expected return of 5%. What is the maximum price at which you are willing to purchase this stock?

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Financial Management: What is the maximum price at which you are willing to
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