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Firm OilCo is expected to pay a constant regular dividend of 4 . 5 euro / year in every year forever starting with a year
Firm OilCo is expected to pay a constant regular dividend of euroyear in every year forever starting with a year from tie at dates tinfinity these dividends do not grow. OilCo is expected to pay a onetime special dividend of euroshare at date t Assume that CAPM holds: riskfree rate is percent, OilCo has a beta of the expected return on the market is percent. What is the companys expected stock price at date t right after the payment of the first regular dividend? Enter your answer as a number without a euro sign.
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