Assume risk-free rate and expected rate of return on markat

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A share of stock is now selling for $70. It will pay a dividend of $8 per share at the end of the year. Its beta is 1.1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of return on the market is 15%.

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Reference no: EM131319012

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