A stock is selling for $35.00. The stock’s value is expected to grow by 10% per year. It has a beta of 1.0 

a) I expect to sell the stock in 5 years; what will it be worth then?. 

b) I want a return of 9% -- Should I buy the stock? 

c) The Stocks beta increases to 1.2 should I still buy the stock? 

d) The stock pays a dividend of $1.00 per year. Should I buy it now?

Answer rating: 100% (QA)

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