Explain what should the share price be in one year

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Reference no: EM131984537

A share of stock sells for $36 today. The beta of the stock is 1.1, and the expected return on the market is 15 percent.

The stock is expected to pay a dividend of $.90 in one year. If the risk-free rate is 3.5 percent, what should the share price be in one year?

(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131984537

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