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Question
If the risk-free rate is 7%, the return on the market portfolio is 15%, and the beta is 1.5, what is the value of the stock if the current dividend (D0) is $1.20 and it is expected to grow at a constant rate of 6% per year?a. $6.30
b. $6.70
c. $9.20
d. $9.80
e. $20.00
Answer
This answer is hidden. It contains 3 characters.
Related questions
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