Compute the price of alcoas stock

Reference no: EM13261383

Alcoa Inc, is expected to have cash flows of $8 per share in the coming year. Cash flows are expected to decline at the rate of 2% per year. The risk-free rate of return is 6% and the expected return on market is 14%. The stock of Alcoa has a beta of -0.25.

Required:
Compute the price of Alcoa's Stock.

Reference no: EM13261383

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