Given D1 = P2.00, beta=0.9, risk- free rate -5.6%, market risk premium = 6%, current stock price = P25, and the market is in equilibrium. What should be the stock price in 3 years?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 3P: Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required...
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Given D1 = P2.00, beta=0.9, risk- free rate -5.6%, market risk premium = 6%, current stock price = P25, and the market is in equilibrium. What should be the stock price in 3 years?
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