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Av expected stock price

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AV's stock is expected to pay a $2.50 dividend at the end of the year (D1 =$2.50). The dividend is expected to grow at a constant rate of 6% a year. The AV stock's is as risky as the market portfolio (beta value of the market is 1 and the market risk premium is 5%. The rate of returns of Treasury bill and FBM KLCI are 4% and 9% respectively. What is the beta value of AV's stock? What's AV's expected stock price three years from now?

Reference no: EM133073964

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