What must be investors expectation of the price of stock

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A share of stock with a beta 65 now3 sells for $40. Investors except the stock to pay a year-end dividend of $2. The T-bill rate is 6%, and the market risk premium is 9%. 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.) Stock price $

Reference no: EM131615859

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