Paramount Company's stock is expected to generate a dividend and terminal value one year from now of

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Paramount Company's stock is expected to generate a dividend and terminal value one year from now of P57.00. The stock has a beta of 1.3, the risk-free interest rate is 6 percent, and the expected return market return is 11 percent.

What should the equilibrium price of Investors' stock in the market now?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Jun 26, 2023 04:05 AM

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Paramount Company's stock is expected to generate a dividend and terminal value one year from now of

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The DDM formula is as follows Equilibrium Price Dividend 1 Required Rate of Return Termin... View the full answer

Fundamentals of Corporate Finance

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