Corporate Finance Assignment/ Professional Essay Writers
May 8th, 2020
A stock with a beta of 1.5 now sells for $100. Investors expect the stock to pay a year-end dividend of $5. The T-bill rate is 3% and the market risk premium is 8%. If the stock is fairly priced today, what must be investors’ expectations for the price of the stock at the end of the year?
e. $90. Get Finance Help Today