Question: A common stock currently has a beta of 1 7 the
A common stock currently has a beta of 1.7, the risk-free rate is 7% annually, and the market return is 12% annually. The stock is expected to generate per-share benefits of $6.70 during the coming period. A pending lawsuit has just been dismissed and the beta of the stock drops to 1.4. The new equilibrium price of the stock is.
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