The beta of a companys stock is 1.5. Its share price and dividend next year are expected

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The beta of a company’s stock is 1.5. Its share price and dividend next year are expected to be $110 and $5, respectively. Suppose that the risk-free rate is 3% and the market risk premium is 7%. What is the current price of the company’s stock?

A. $96.92 B. $101.32 C. $105.50 D. $111.65 E. $120.97

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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Posted Date: Nov 22, 2022 08:06 AM

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The beta of a companys stock is 1.5. Its share price and dividend next year are expected

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Answer B 10132 Required return risk free rate ... View the full answer

Business Law The Ethical Global and E-Commerce Environment

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