Don's Travel Trailers has a beta of 1.34 and a growth rate of 4.5 percent. The firm's stock is currently selling for $46.20 a share. The overall stock market has a 12.5 percent rate of return and a risk
Premium of 8.2 percent. What is the expected rate of return on this stock?
A) 13.96 percent
B) 14.80 percent
C) 15.29 percent
D) 18.47 percent
E) 20.70 percent
Correct Answer:
Verified
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