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A stock just paid a dividend of $2 per share. This dividend has been growing at a rate of 3.75% per year. The return on
A stock just paid a dividend of $2 per share. This dividend has been growing at a rate of 3.75% per year. The return on the equity market is 10%, and the return on the short-term treasuries are 3%. If the companys beta is 1.2, what is the price of the stock 5 years from now?
** If you can please explain. Thanks!
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