ABC company's ordinary shares are expected to pay $ 3 per share in dividends in 4 years
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Question:
(a) What is the expected return of ABC's shares according to the CAPM?
(b) What is the implied price per share?
(c) If the shares are selling for $25/share, should you make the investment?
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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