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Category > Business & FinancePosted 14 Aug 2017My Price7.00
I need this question right away. Suppose that stock L sells for $75 today and is expected to pay dividend of 2.00 at the end of one year.
I need this question right away.
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Suppose that stock L sells for $75 today and is expected to pay dividend of 2.00 at the end of one year. Firm L's beta is 1.30 the market expected return is 13% and the riskless return is 5%. Using the CAPM and an assumption about market equilibrium forecaset Firm L's price in one year.