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Financial managers of BECN firm plan to issue a stock with a $5 annual year-end dividend that will constantly grow at a growth rate g
Financial managers of BECN firm plan to issue a stock with a $5 annual year-end dividend that will constantly grow at a growth rate g equal to 3%. If BECN firm has a beta 2.0, T-bills rate (i.e., risk-free rate) is 2%, and the market return is 5%. What price should the stock be sold at?
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