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A stock is expected to pay $2 dividend in one year from today and its dividend is expected to grow at a constant rate 6%.
A stock is expected to pay $2 dividend in one year from today and its dividend is expected to grow at a constant rate 6%. If the beta for this stock is 1.5, risk free return is 1%, and market risk premium is 8%, what is the current fair value of this stock today and what will be the fair value of this stock 3 years from now?
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