A stock is selling for $35.00. The stocks value is expected to grow by 10% per year.
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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?
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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