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Assume that the risk-free rate is 8 percent, the MRP is 5 percent, and that a share of stock in your company has a beta
Assume that the risk-free rate is 8 percent, the MRP is 5 percent, and that a share of stock in your company has a beta of 1.4. If the current dividend just paid (Do) was $2.60 and is expected to grow at a long-run growth rate of 10 percent per year, then how much should investors be willing to pay for this stock? A. B. C. D. E. $49.50 $51.10 $53.20 $55.80 $57.20
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