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Currently Treasury bills are returning 2% and the S&P 500 is returning 10%.You are considering purchasing a stock in CCC firm. The firm has an
Currently Treasury bills are returning 2% and the S&P 500 is returning 10%.You are considering purchasing a stock in CCC firm. The firm has an estimated beta of 1.2. You expect the firm's stock to pay a dividend of $20 at the end of the year. Based on historical growth, you expect dividends to grow at 4%. If you require a return of 8%, how much should you pay for this stock?
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