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A security has a beta of 1.25, the annual risk-free rate of interest is currently 3%, and the required return on the market portfolio is
A security has a beta of 1.25, the annual risk-free rate of interest is currently 3%, and the required return on the market portfolio is 9% p.a. The companys last dividend payment was $2.00 per share and it estimates that its future dividends will grow at an annual compound rate of 5%. The next dividend will be paid in exactly one years time.
Estimate the value of the companys ordinary shares
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