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ABC Stock is currently priced at $75. The stock is expected to be worth $98 in one year and you expect to receive a dividend

ABC Stock is currently priced at $75. The stock is expected to be worth $98 in one year and you expect to receive a dividend of $2.00 a share. The beta of ABC is 2.00. The risk-free rate is 3% and the expected return of the stock market is 10% (the market risk premium is 7%). Should you invest in ABC stock? Explain why. What is the fair value estimate for ABC stock today?

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