A share of stock sells for 50 today It
A share of stock sells for $ 50 today. It will pay a dividend of $ 6 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?
Assume that the risk- free rate of interest is 6 percent and the expected rate of return on the market is 16 percent.
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