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An analyst gathered the following information for a stock and market parameters: stock beta = 0.87; expected return on the Market = 10.00%; expected return
An analyst gathered the following information for a stock and market parameters: stock beta = 0.87; expected return on the Market = 10.00%; expected return on T-bills = 1.50%; current stock Price = $5.10; expected stock price in one year = $14.77; expected dividend payment next year = $2.94.
Calculate the a) Required return for this stock:?
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