A common stock currently has a beta of 1.7, the risk-free rate is 7% annually, and the

Question:

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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...