What price should the stock be trading at today

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A stock is priced today at $12.63. Analysts have a consensus view that the stock will be valued at $16.27 next year. The stock will not pay a dividend in the coming year. After a little research, you know that the stock has a beta of 1.03. The risk free rate in the economy is 4.00%, while the market risk premium is 7.00%.

If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY?

Reference no: EM131897379

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