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Antigone Inc. paid out a dividend of $1.75 and analysts expect it to grow at 6% for the foreseeable future. The market rate is 17%,
Antigone Inc. paid out a dividend of $1.75 and analysts expect it to grow at 6% for the foreseeable future. The market rate is 17%, the T bill rate is quoted at 4%, and Antigone stock is selling at $15.50(beta 1.2) a)What is the expected return on Antigone Stock? b)Are Antigone shares overpriced,underpriced or correctly priced? c)Is Antigone stock above,below or on the SML? d) What is the equilibrium price of Antigone stoc?
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