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Posted on Jul 24, 2024

Cartwright Brothers' stock is currently selling for $40 a share. The stock is expected to pay a $2 dividend at the end of the year.

The stock's dividend is expected to grow at a constant rate of 7 percent a year forever.

The risk-free rate (RF) is 6 percent and the market risk premium (RM - RF) is also 6 percent. What is the stock's beta?

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