Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A share of stock with a beta of 0.85 now sells for $60. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate
Is 4%, and the market risk premium is 7%. 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? (Do not round Intermediate calculations. Round your answer to 2 decimal
places.)
Stock price
sis.docx
WalmartAnalysis.pdf
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Transcribed Image Text:1 A share of stock with a beta of 0.85 now sells for $60. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate Is 4%, and the market risk premium is 7%. 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? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Stock price sis.docx WalmartAnalysis.pdf < Prev 12 of 17 Next > Show All x
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