Problem

The risk-free rate of return is 5%, the required rate of return on the market is 10%, an...

The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.50 and g = 4%, at what price should a share sell?

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Solutions For Problems in Chapter 13