A stock is expected to pay a year-end dividend of $8 and then to sell at a price of $109.The risk-free interest rate is 4%,the expected market return is 12% and the stock has a beta of 0.8.What is the stock price today?
A) $102.99.
B) $98.73.
C) $105.98.
D) $109.00.
Correct Answer:
Verified
Q68: You believe that Alpha stock which has
Q69: A stock has a beta of 1.4
Q70: Calculate the risk premium on stock C
Q71: If Stock A has a higher expected
Q72: What rate of return should an investor
Q74: When Treasury bills yield 7% and the
Q75: The slope of the security market line
Q76: Which one of these statements is correct?
A)
Q77: An investor expects a return of 18%
Q78: A stock's risk premium is equal to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents