The risk-free rate is 1%. The market returns 6% on average with a volatility of 20%....

 

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The risk-free rate is 1%. The market returns 6% on average with a volatility of 20%. A stock has a beta of 1.5. The stock pays dividends. Next year you expect a dividend of $5 (on average) and a ex-dividend price of $100 (on average). What is the price of the stock today? (Provide the answer as dollars and centers, i.e. 250 and 23 cents is 250.23) Your Answer: The risk-free rate is 1%. The market returns 6% on average with a volatility of 20%. A stock has a beta of 1.5. The stock pays dividends. Next year you expect a dividend of $5 (on average) and a ex-dividend price of $100 (on average). What is the price of the stock today? (Provide the answer as dollars and centers, i.e. 250 and 23 cents is 250.23) Your Answer: The risk-free rate is 1%. The market returns 6% on average with a volatility of 20%. A stock has a beta of 1.5. The stock pays dividends. Next year you expect a dividend of $5 (on average) and a ex-dividend price of $100 (on average). What is the price of the stock today? (Provide the answer as dollars and centers, i.e. 250 and 23 cents is 250.23) Your Answer:

Answer rating: 100% (QA)

Step 1 The price of the stock today can be calculated using the dividend dis... View the full answer