A share of stock with a beta of 069 now sells for 44, Ask an Expert

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A share of stock with a beta of 0.69 now sells for $44. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 6%, and the market risk premium is 9%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92665818

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