Duke Blue Devil Inc. just paid a dividend of $$2\mathrm{.}00.$ Its stock is now selling for $$48$ per share. The firm is $50\%$ as risky as the market. The expected return on the market is $14\%,$ and the yield on U$.$S$.$ Treasury bonds is $11\%.$ If the market is in equilibrium, what rate of growth is expected?

Answer rating: 100% (QA)

To solve this problem we can use the capital asset pricing mo... View the full answer