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Assume the risk-free rate is 5% and the market risk premium is 8%. The stock of Physicians Care Network (PCN) has a beta of 1.5.

Assume the risk-free rate is 5% and the market risk premium is 8%. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. What would PCNs stock value be if the dividend were expected to grow at a constant rate of 0%.

a. $5.05

b. $0.00

c. $11.77

d. $20.40

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