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A share of stock is expected to sell for $100 and pay a dividend of $2 at the years end. What is the fair price
A share of stock is expected to sell for $100 and pay a dividend of $2 at the years end. What is the fair price of the stock today if its beta is 1.39? Assume that the risk-free rate is 0.06 and the expected risk premium on the market is 0.15%.
Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
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