Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 18%. A share of stock
Posted: Sun Jul 03, 2022 3:43 pm
Assume that the risk-free rate of interest is 4% and theexpected rate of return on the market is 18%. A share of stocksells for $52 today. It will pay a dividend of $4 per share at theend of the year. Its beta is 1.0. What do investors expect thestock to sell for at the end of the year? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)