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2. Problem 8-5 as well you want to buy the stock and your broker says she can buy it for you for $50 per share

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2. Problem 8-5 as well you want to buy the stock and your broker says she can buy it for you for $50 per share -- should you buy it and what kind of total profit or loss would you make if you bought 200 shares and sold them at the market price. A company currently pays a dividend of $2 per share, DO - $2. It is estimated that the company's dividend will grow at a rate of 14% per year for the next 2 years, then the dividend will grow at a constant rate of 7% thereafter. The company's stock has a beta equal to 1.8. the risk-free rate is 4.5%, and the market risk premium is 4%. What is your estimate of the stock's current price

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