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Assume that the market is in equilibrium. MY stock is currently selling for $30 per share. The stock is expected to pay a $3 dividend
Assume that the market is in equilibrium. MY stock is currently selling for $30 per share. The stock is expected to pay a $3 dividend at the end of the year. The stock's dividend is expected to grow at a constant rate of 7 percent per year forever. The risk-free rate (rRF) is 5 percent and the market risk premium (rM -RF) is 6 percent. What is the stock's beta? 2.0 O 2.33 0 1.67 L6! 0 1.5 O 1.0 X-box Corp.'s expected year-end dividend is D1- $1.60, its required return is rs- 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is X-box's expected stock price in 8 years? O $43.44 O $39.40 O $37.52 O $41.37 $45.61
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