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Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 18%. A share of stock sells for $52 today. It will pay a dividend of $4 per share at the end of the year. Its beta is 1.0. What do investors expect the stock to sell for at the end of the year?

(Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Expected stock price $________

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Financial Management, Finance

Category:- Financial Management
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