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A Common Stock Is Expected to Generate an End-Of-Period Dividend

Question 81

Multiple Choice

A common stock is expected to generate an end-of-period dividend of $5 and an end-of-period price of $62.If this security has a beta coefficient of 1.3,the risk-free interest rate is 10%,and the expected return on the market portfolio is 19%,then what is the value of this security today?


A) $55.50
B) $59.98
C) $55.05
D) $56.30

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