Shares of The Laundry Corporation are currently selling for $35 each. If T-Bills are currently yielding 2% and if the Market Risk Premium is 8%, with a projected year-end dividend of $3 per share and a Beta of 1.25, what are investors expecting the year-end price to be, if the securities are at equilibrium?

Answer rating: 100% (QA)

To calculate the expected yearend price of The Laundry Corporations shares we can use th... View the full answer