The expected rate of return on the market

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Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 17%. A share of stock sells for $57 today. It will pay a dividend of $4 per share at the end of the year. Its beta is 1.1. What do investors expect the stock to sell for at the end of the year?

Reference no: EM131022958

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