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Problem:

QPT paid a $3 per share dividend yesterday (D0=$3). The divident is expected to grow at 7 percent per year for the foreseeable future. QPT has a beta of 1.6, a standard deviation of returns of 28 percent, and a required returns of 19%.

Required:

Question: What is the value of a share of QPT common stock?

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162932

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