Determine market price per share of common stock

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1. How do you determine market price per share of common stock?

2. Consider a three period binomial model (one initial date and two steps) as in class. Let the initial stock price be $100. Let the upward increments be.

3. What is the Market expected return and Risk Premium based on the following data

common stock risk premium= 11.00 %

risk-free return = 4.00%

Beta = 1.0.

Reference no: EM131913388

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