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A firm will pay a dividend of $2.16 at the end of the year.. Its stock is now selling for $48 per share. The firm
A firm will pay a dividend of $2.16 at the end of the year.. Its stock is now selling for $48 per share. The firm is 50% as risky as the market. The expected return on the market is 14 percent, and the yield on U.S. Treasury bonds is 11 percent. If the market is in equilibrium, what rate of growth is expected?
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