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Dynasty Inc. is an all-equity financed firm with 100 million shares outstanding. Its board announced an annual dividend of $3 per share and its stock
Dynasty Inc. is an all-equity financed firm with 100 million shares outstanding. Its board announced an annual dividend of $3 per share and its stock will go ex-dividend tomorrow. This dividend is expected to grow by 5% perpetually. Dynastys shares have a beta of 2. The risk free interest rate is 4%. The market index is expected to return 8% annually. What will Dynasty's ex-dividend price be?
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