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High Fly Airline Is Expected to Pay a Dividend of $7

Question 114

Multiple Choice

High Fly Airline is expected to pay a dividend of $7 in the coming year.Dividends are expected to grow at the rate of 15% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of High Fly Airline has a beta of 3.00.The return you should require on the stock is ________.


A) 10%
B) 18%
C) 30%
D) 42%
E) none of these

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