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Based on the following data for UUP stock, what is the implied market risk premium? Dividend just paid, D0 = $4 10-year Treasury bond yeild
Based on the following data for UUP stock, what is the implied market risk premium?
Dividend just paid, D0 = $4
10-year Treasury bond yeild = $3%
Beta for the stock = 1.5
current market price, P0 = $125.71
constant dividend growth rate = 10%
Assume that the stock is priced in equilibrium.
A. 9% B. 10% C. 7% D. 11% E. 8%
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