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ABC common stock is expected to have extraordinary growth in earnings and dividends of 26% per year for 2 years, after which the growth rate
ABC common stock is expected to have extraordinary growth in earnings and dividends of 26% per year for 2 years, after which the growth rate will settle into a constant 3%. If the discount rate is 15% and the most recent dividend was $1, what should be the approximate current share price (in $ dollars)? $ You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.13 and the beta of the portfolio is 1.03, what does the beta of stock B have to be
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