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#20. You own a stock with a beta of 1.4 that is currently priced at $45 and is expected to pay a dividend of $1.15

#20. You own a stock with a beta of 1.4 that is currently priced at $45 and is expected to pay a dividend of $1.15 next year. If the risk-free rate is 3% and the expected market return is 6%, what will the price have to reach next year to provide your required return?

A. $47.09

B. $48.24

C. $48.95

D. $49.39

E. $48.98

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