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Given a stock and the following: The stock pays a constant dividend into perpetuity, and it is valued based on this assumption (hint). News relating
Given a stock and the following: The stock pays a constant dividend into perpetuity, and it is valued based on this assumption (hint). News relating to risk is released meaning that i increases by 110% What should the new E(ri) be for the security (i.e. the discount rate) assuming the CAPM? 0.11111 0.11745 0.12438 0.12849 0.10594
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