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Assume that the stock of XYZ has a beta of 1.2, the current risk-free rate is 6% and the annualized market premium is 9%. Further

Assume that the stock of XYZ has a beta of 1.2, the current risk-free rate is 6% and the annualized market premium is 9%. Further assume that next year dividend is expected to be $3 per share and its perpetual growth rate is 5%. According to the CAPM, what should be the price of the stock

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