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6. Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of
6. Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. What would PCNs stock value be if the dividend were expected to grow at a constant rate of negative 5%.
Choice: $6.00
Choice: $9.50
Choice: $13.45
Choice: $17.60
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