Question: Question 10 2 pts A common stock currently has a beta of 1.3, the risk-free rate is an annual rate of 6 percent, and the

 Question 10 2 pts A common stock currently has a beta

Question 10 2 pts A common stock currently has a beta of 1.3, the risk-free rate is an annual rate of 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate a constant dividend of $5.20 per share. A toxic spill results in a lawsuit and potential fines, and the beta of the stock jumps to 1.6. The new equilibrium price of the stock will be $37.68 $33.33 $41.98 $43.33

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