Solution-Investors expectation of the price

Investors expectation of the price

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Reference no: EM131097929

A share of stock with a beta of .82 now sells for $57. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 5%, and the market risk premium is 8%. If the stock is perceived to be fairly priced today, what must be investors' expectation of the price of the stock at the end of the year? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Reference no: EM131097929

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Investors expectation of the price

Reference no: EM131097929

Reference no: EM131097929

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