A common stock is expected to generate an end-of-period dividend of $5 and an end-of-period price of $62. If this security has a beta coefficient of 1.3, the risk-free interest rate is 10%, and the expected return on the market portfolio is 19%, then what is the value of this security today?

a. $55.50

b. $59.98

c. $55.05

d. $56.30

Answer rating: 100% (QA)

Expected return on the stock Riskfree rate Beta x Expect... View the full answer