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A stock with a beta of 1.2 just paid a dividend of $3.25 that is expected to grow at 7%. If the risk-free rate is

A stock with a beta of 1.2 just paid a dividend of $3.25 that is expected to grow at 7%. If the risk-free rate is 2% and the market risk premium is 5.5%, what should be the price of the stock in five years?

A. $217.34
B. $284.89
C. $203.13
D. $304.84

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