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a 6. Consider a stock with market beta =1.5, market expected return = 12% and risk free rate=4%. Assuming CAPM holds, what is the current

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a 6. Consider a stock with market beta =1.5, market expected return = 12% and risk free rate=4%. Assuming CAPM holds, what is the current stock price if the stock pays $3 dividend in perpetuity? (8 points) A. $12.50 B. $14.50 C. $18.75 D. $11.90

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