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Suppose that stock L sells for 60 today and is expected to pay a dividend of 100 at the end of one year Firm Ls beta is 050 the market expected return is 13 and the riskless return is

Suppose that stock L sells for $60 today and is expected to pay a dividend of $1.00 at the end of one year. Firm L's beta is 0.50, the market expected return is 13%, and the riskless return is 1%. Using the CAPM and an assumption about market equilibrium, forecast Firm L's price in one year. $63.20 $75.84 $60.04 $74.58

 

Aug 19 2020 View more View Less

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