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Firm L is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 3%, and the expected return
- "Firm L is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 3%, and the expected return on the market portfolio is 13%. Analysts expect the price of the firm's shares to be $55 a year from now. The beta of firm's stock is 0.89. Using the CAPM, an appropriate required return on the stock is _________."
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