A share of stock with a bera of .75 now sells for 50., Ask an Expert

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A share of stock with a bera of .75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 4%, and the market risk premium is 7%. If the stock is perceived to be fairly priced today.

What must be the investors´expectation of the price of the stock at the end of the year? (L02)

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