QUESTION 5 XYZ stock is expected to be priced at $48.50 in 1 year. It...
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QUESTION 5 XYZ stock is expected to be priced at $48.50 in 1 year. It is expected to pay its next dividend, which is expected to be $2.30, in 1 year. The stock has a beta of 1.30. The market has an expected return of 11.096 and the risk-free rate is 2.096. What is the current price of XYZ stock? a. $46.61 (plus or minus $0.10) b. $45.48 (plus or minus 50.10) C 543.68 (plus or minus 50.10) d. $44.68 (plus or minus 50.10) e. None of the above is within 50.10 of the correct
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