Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent.The stock is currently selling for $12 a share.The overall stock market has an 11 percent rate of return and a risk premium of 8 percent.What is the expected rate of return on Daniel's Enterprises stock?
A) 10.00 percent
B) 15.85 percent
C) 16.67 percent
D) 18.84 percent
E) 19.06 percent
Correct Answer:
Verified
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