Question: Problem 7 - 1 0 ( Algo ) Required: The market price of a security is $ 5 4 . Its expected rate of return

Problem 7-10(Algo)
Required:
The market price of a security is $54. Its expected rate of return is 9%. The risk-free rate is 5%, and the market risk premium is 9%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity. (Round your answer to 2 decimal places.)
Market price
Problem 7-10(Algo) Required: The market price of a security is $54.

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