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Business, 28.11.2019 00:31 zapatamylene24

Ashare of stock with a beta of 0.84 now sells for $69. investors expect the stock to pay a year-end dividend of $4. the t-bill rate is 3%, and the market risk premium is 7%.a. suppose investors believe the stock will sell for $71 at year-end. calculate the opportunity cost of capital. is the stock a good or bad buy? what will investors do? (do not round intermediate calculations. round your opportunity cost of capital calculation as a whole percentage rounded to 2 decimal places.)opportunity cost of capital %? b. at what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today? (do not round intermediate calculations. round your answer to 2 decimal places.)stock

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Ashare of stock with a beta of 0.84 now sells for $69. investors expect the stock to pay a year-end...
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