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3. The Chocolate Factory is expected to pay $2 dividend per share at the end of the year. This dividend is expected grow indefinitely at
3. The Chocolate Factory is expected to pay $2 dividend per share at the end of the year. This dividend is expected grow indefinitely at a constant rate of 6% per annum. The required rate of return on the stock is 10%.
a) Calculate the price of the share today.
b) The risk-free rate is 2% and the return of a market portfolio is 4%. Calculate the Beta of The Chocolate Factory
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