What is the value of XYZs stock today

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Reference no: EM132971964

Question - XYZ Inc. is expected to pay a dividend of $2 (D1) in the upcoming year. The risk-free rate of return is 4% (Rf), and the expected return on the market portfolio is 10%(Rm). The beta of XYZ's stock is 1.25. The price of XYZ's stock next year is expected to be $21(P1). What is the value of XYZ's stock today (P0)?

Reference no: EM132971964

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