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ABC Stock is currently priced at $75. The stock is expected to be worth $85 in one year and you expect to receive a dividend
ABC Stock is currently priced at $75. The stock is expected to be worth $85 in one year and you expect to receive a dividend of $2.00 a share. The beta of ABC is 1.75. The risk free rate is 3% and the expected return of the stock market is 10%. Should you invest in ABC stock? What is the fair value estimate for ABC stock today?
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