Teslas beta is 2.2. If the price of its stock today is $65, and Tesla will pay
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Question:
Teslas beta is 2.2. If the price of its stock today is $65, and Tesla will pay a dividend of $2 in one year, what is the expected stock price in one year, immediately after the dividend payment? Assume the risk-free rate is 3% and the expected return on the market is 7%.
A. $62.51
B. $69.45
C. $70.67
D. $72.67
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