Assume the risk free rate is 8% and the expected rate of return on the market is 16%. A share of stock is now selling for $75. It will pay a dividend of $5 per share at the end of the year. Its bets is .80. 

What must investors expect the stock to sell for at the end of the year.

Answer rating: 100% (QA)

SOLUTION To determine what investors must expect the stock to sell for at the end of the year we can ... View the full answer