Explore BrainMass
Share

Explore BrainMass

    Future value of stock expected at end of year two

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Stock currently sells for 35.02 a share, the market required rate of return is 17%, the beta is 0.10, ant the risk-free rate of return is 3.3%. If I were to hold this stock for 2 years what is the future value of the stock expected at the end of year two?

    © BrainMass Inc. brainmass.com October 9, 2019, 6:59 pm ad1c9bdddf
    https://brainmass.com/economics/risk-analysis/future-value-stock-expected-end-year-104187

    Solution Preview

    See the attached file.
    Stock currently sells for 35.02 a share, the market required rate of return is 17%, the beta is 0.10, and the risk-free rate of return is 3.3%. If I were to hold this stock for 2 years what is the future value of the stock expected at the end ...

    Solution Summary

    This solution is comprised of a detailed explanation and calculation to find future value of stock expected at end of year two.

    $2.19