A stock with a beta of 0.72 is now selling for $47. Investors expect the stock to

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A stock with a beta of 0.72 is now selling for $47. Investors expect the stock to pay $2 in year-end dividends. The bond rate is 3% and the market risk premium is 6%.

If the stock is perceived to be reasonably priced today, what should investors expect from the stock's end-of-year price?

Related Book For answer-question

Principles of Managerial Finance

ISBN: 978-0133507690

14th edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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Posted Date: Mar 28, 2023 12:07 AM

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A stock with a beta of 0.72 is now selling for $47. Investors expect the stock to

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Principles of Managerial Finance

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