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Dunder-Mifflin has a beta of 1.2 and just paid a dividend of $1.50 that is expected to grow at 5%. If the risk-free rate is

Dunder-Mifflin has a beta of 1.2 and just paid a dividend of $1.50 that is expected to grow at 5%. If the risk-free rate is 3% and the market risk premium is 6%, what should be the price of the stock?

  • A. $38.66

  • B. $30.29

  • C. $36.82

  • D. $28.85

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