A share of stock with a beta of 80 now sells for 55, Ask an Expert

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A share of stock with a beta of .80 now sells for $55. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 3%, and the market risk premium is 6%. 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? (Round 3 decimal places)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92052155

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