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A share of common stock pays dividends with a constant growth rate as D 0 =${div0}, D 1 = $9.36, D 2 = $9.7344, .
A share of common stock pays dividends with a constant growth rate as D0=${div0}, D1= $9.36, D2= $9.7344, . The trend of dividend payments continues indefinitely. Suppose the return on the stock market is 9.6%, the return on the risk free assets is 3%, and the companys beta is 1. Compute the value of this stock.
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