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A stock is selling for $50 in the market. The company's beta is 1.2, the market risk premium (rM - rF) is 5%, and the
A stock is selling for $50 in the market. The company's beta is 1.2, the market risk premium (rM - rF) is 5%, and the risk-free rate is 6%. The most recent dividend paid is DO = $2.0 and dividends are expected to grow at a constant rate g. What's the required rate of return by common shareholders? C 5.0% 6.0% 11.0% 12.0% Using the information from Question 48, what's the dividend growth rate g for this stock? 6.22% 7.31% 7.69% 8.15% Using the information from Question 48 and 49, calculate the stock's expected dividend yield. 4.31% C 5.00% C 6.22% 7.70%
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