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3. Assume a stock that will pay dividends of $1,55 each year for the next five years and will have an expected price of $25

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3. Assume a stock that will pay dividends of $1,55 each year for the next five years and will have an expected price of $25 in five years. It has a beta of 0.86. Market return is 12% and risk-free rate is 3% (1) Find its required rate of return (2) Find its value (3) if stock price is $18, what is the expected return? Is the price low or high? Is the expected return low or high? is this stock a good investment? Explain. (4) if stock price is $22, what is the expected return? Is the price low or high? is the expected return low or high? is this stock a good Investment? Explain

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