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5. You are given the following information about Gesick Manufacturing. Current stock price is $53.25 Dividend that has just been paid = $3.75 Growth
5. You are given the following information about Gesick Manufacturing. Current stock price is $53.25 Dividend that has just been paid = $3.75 Growth rate of dividends = 5% - Beta = 1.25 Risk free rate = 1.50% Market risk premium = 8.5% a. Compute the return for GM using the dividend growth model. b. Compute the return using the security market line.
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