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Assume the risk free return is 3% and the market risk premium is 5%. NLD has a beta of 2 and the company pays $0.6

Assume the risk free return is 3% and the market risk premium is 5%. NLD has a beta of 2 and the company pays $0.6 constant dividend each year forever. According to the CAPM, the share price of NLD is closest to:

Select one:

a.

6

b.

0.6

c.

4.62

d.

6.38

e.

3.15

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