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A stock has a beta of 1.2. Its next dividend is expected to be $20, paid one year from now. Dividends are expected to be

A stock has a beta of 1.2. Its next dividend is expected to be $20, paid one year from now. Dividends are expected to be paid annually and grow by 1.5% pa forever. Treasury bonds yield 3% pa and the market portfolio's expected return is 7% pa. All returns are effective annual rates. What is the price of the stock now?

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