Chapter 13, Problem 15PS

The risk-free rate of return is $\text{5}\%$ , the required rate of return on the market is $\text{1}0\%$ , and High-Flyer stock has a beta coefficient of $\text{1}.\text{5}$ . If the dividend per share expected during the coming year, ${\text{D}}_{\text{1}}$ , is $\$\text{2}.\text{5}0$ and $\text{g }=\text{ 4}\%$ , at what price should a share sell? $\left(\text{LO 13}-\text{2}\right)$