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eBook Problem 11-06 The risk-free rate of return is 4 percent, and the expected return on the market is 7.7 percent. Stock A has a

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Problem 11-06

The risk-free rate of return is 4 percent, and the expected return on the market is 7.7 percent. Stock A has a beta coefficient of 1.2, an earnings and dividend growth rate of 7 percent, and a current dividend of $3.10 a share. Do not round intermediate calculations. Round your answers to the nearest cent.

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