The government of a country increased the minimum wage from $21 to $30. A factory owner had to lay off some of his workers becau
2 answers:
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Answer:
$180
Explanation:
Expected return E(r) =
D1= Next year's dividend
P1 = Next year's price
P0 = Current price
Since the beta is 1, it means this stock's return = market return = 20%
E(r) =
0.20 =
Multiply both sides by 155
31 = P1-149
Add 149 on both side s to solve for P1;
31+149 = P1
180 = P1
Therefore, the stock will sell at $180