share of stock sells for $48 today. The beta of the stock is 1.3 and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $.70 in one year. If the risk-free rate is 4.7 percent, what should the share price be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

share of stock sells for $48 today. The beta of the stock is 1.3 and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $.70 in one year. If the risk-free rate is 4.7 percent, what should the share price be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 11P

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