(Answered) Assume that the risk-free rate of interest is 3 and the

Finance

Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 16%. A share of stock sells for $70 today. It will pay a dividend of $5 per share at the end of the year. Its beta is 1.3. What do investors expect the stock to sell for at the end of the year?

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