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Based on the historical performance of Strava Corporation, you expect earnings and dividends to grow at a constant rate of 12%. You are considering buying
Based on the historical performance of Strava Corporation, you expect earnings and dividends to grow at a constant rate of 12%. You are considering buying this stock at its current market price of $40. Based on a beta of 1.2 , you would require a return of 14% on this stock. The stock just paid a dividend of $5 based on recent accounting statements. How much should you pay for this stock? (6)
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