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7. What should the price be for a stock with the following characteristics? Beta: 0.89 Current Dividend: $3.25 Constant Dividend Growth Rate: 3.0% Assume that

7. What should the price be for a stock with the following characteristics? Beta: 0.89 Current Dividend: $3.25 Constant Dividend Growth Rate: 3.0% Assume that the expected market return is 15%, and the risk-free rate is 8%.

a. $29.81

b. $30.57

c. $36.78

d. $40.58

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