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15 Company Omega is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at the rate of 8%
15 Company Omega is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Investors use the CAPM to compute the market capitalization rate on the stock and use the constant-growth DDM to determine the intrinsic value of the stock. The stock is trading in the market today at $84. Using the constant-growth DDM and the CAPM, the beta of the stock is around Your choice: 15/25 Qs 1.41 0.64 0.90 0.83
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