A share of stock sells for $45 today. The beta of the stock is 1.7 and the expected return on the market is 13 percent. The expected to pay a dividend of $.80 in one year. If the risk-free rate is 4.4 percent, what should the share price be in one y round intermediate calculations. Round your answer to 2 decimal places.) Share price

A share of stock sells for $45 today. The beta of the stock is 1.7 and the expected return on the market is 13 percent. The expected to pay a dividend of $.80 in one year. If the risk-free rate is 4.4 percent, what should the share price be in one y round intermediate calculations. Round your answer to 2 decimal places.) Share price

Name: A share of stock sells for $45 today. The beta of the stock is 1.7 an
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Description: A share of stock sells for $45 today. The beta of the stock is 1.7 and the expected return on the market is 13 percent. The stock isexpected to pay a dividend of $.80 in one year. If the risk-free rate is 4.4 percent, what should the share price be

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 4P

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