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A share of stock with a beta of 0.74 now sells for $49. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 5%, and the market risk premium is 8%. 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.:- M92664439

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