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2. Temple Lunch Trucks, Inc. just paid a dividend of $3.50. Dividends are expected to grow at a rate of 4% per year from
2. Temple Lunch Trucks, Inc. just paid a dividend of $3.50. Dividends are expected to grow at a rate of 4% per year from here on out. If the risk- free rate is 2.5%, the expected return on the market is 5% and Temple Lunch Trucks' stock has twice the average market risk, what is the most that you should be willing to pay for a share of this stock today?
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
