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7 A share of Sherwin Williams common stock has just paid an annual dividend of $4.52. If the expected long-run growth rate for this stock
7 A share of Sherwin Williams common stock has just paid an annual dividend of $4.52. If the expected long-run growth rate for this stock is 6 percent, the market rate for stocks is 10%, and the risk free rate is 1.5%. What is Sherwin William's stock price if it's beta is 1.25 and the historic dividend growth rate is 5% a. 21.36 b. 47.17 c. 54.25 d. 66.61 Using the Capital Asset Pricing Model (CAPM), if the market rate for stocks is 10%, and the risk-free rate is 1.5%, and a firm's beta is 1.65, calculate the required rate of return for this firm's stock a. 17.04% b. 15.53% c. 13.75% d. 11.33%
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