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Facebookhas gone public by issuing equity.As an analyst for a bank, you've estimated that the company will have a Beta of 1.2.You know that Facebook
Facebookhas gone public by issuing equity.As an analyst for a bank, you've estimated that the company will have a Beta of 1.2.You know that Facebook just gave a dividend today of $4 per share.You anticipate the dividend to grow at a rate of 10% per year. The risk-free rate is 2% and the average return of the market is 13%.In two years (t=2), you anticipate Facebook's stock to have a price of $__________ per share.
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