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Berg Inc. has just paid a dividend of$2. Its stock in now selling for$48 per share. The firm is half as risky as the market.
Berg Inc. has just paid a dividend of$2. Its stock in now selling for$48 per share. The firm is half as risky as the market. The expected return on the market is14%, and the yield on U.S. Treasury bonds is11%. If the market is inequilibrium, what rate of growth isexpected?
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