- 7 Capital Asset Pricing Model 1 The Kelvin Company Paid An Annual Dividend Of 1 50 And Is Expected To Grow At 7 In 1 (16.37 KiB) Viewed 43 times
7. CAPITAL ASSET PRICING MODEL (1) The Kelvin Company paid an annual dividend of $1.50, and is expected to grow at 7% in
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7. CAPITAL ASSET PRICING MODEL (1) The Kelvin Company paid an annual dividend of $1.50, and is expected to grow at 7% in
7. CAPITAL ASSET PRICING MODEL (1) The Kelvin Company paid an annual dividend of $1.50, and is expected to grow at 7% in the future. Short term Treasury bills are yielding 6% and an average stock yields a cumulative return of 10%. The stock price of the company is relatively volatile and moves at twice the rate of the overall market (beta = 2.0). What is the estimated selling price of Kelvin stock?