Assume that the risk-free rate of interest

Assignment Help Financial Management

Reference no: EM131458442

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 sells for $52 today. It will pay a dividend of $4 per share at the end of the year. Its beta is 1.0. What do investors expect the stock to sell for at the end of the year?

(Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Expected stock price $________

Reference no: EM131458442

Questions Cloud

Differenciate between shopping and an informational web site : Explain the difference between a shopping Web site and an informational Web site. Consumers can purchase products on shopping sites, while informational sites.

Explain the relationship of criminology to criminal justice : Explain the relationship of criminology to criminal justice.What are the similarities between RC and RAT? Define the "seductions of crime."

Particular market domain within that industry : Select a general industry that interests you and choose a particular market domain within that industry to expand your research and use as a model.

Briefly explain how e-procurement works : Briefly explain how e-procurement works. E-procurement systems are Web-based systems that enable all types of organizations to improve the efficiency.

Assume that the risk-free rate of interest : Assume that the risk-free rate of interest is 4% and the expected rate of return on the market is 18%.

Scenario using the three ethical frameworks : Evaluate the scenario using the three ethical frameworks (consequential, deontological and humanist) that were discussed in the text.

Prepare a presentation about human reproduction : Well, it is that time-yes, time for that talk. For this activity, you will develop a PowerPoint Presentation about human reproduction.

What is the difference between mz and dz twins : Describe the biological and psychological factors that contribute to crime and deviance within society today.What is the difference between MZ and DZ twins?

Explain what is involved in a product costing system : You, the managerial accountant, are asked by the CFO of Wilson-West Manufacturing to set up a product costing system - Explain what is involved in a product costing system.

User Account

All Pages