Expected selling price, A share of stock is now selling for

Expected selling price

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A share of stock is now selling for $105. It will pay a dividend of $7 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 7% and the expected rate of return on the market is 16%.

Expected selling price-

Reference no: EM13814069

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