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Given the following information, calculate the required rate of return for Chicago Bears Inc.: beta = 0.8; Estimated Market Risk Premium (RP.mkt) = 7.5%; Estimated
Given the following information, calculate the required rate of return for Chicago Bears Inc.: beta = 0.8; Estimated Market Risk Premium (RP.mkt) = 7.5%; Estimated Risk Free Return (RF) = 3.5%; Dividend at "t=1" = $2.00; Price at "t=0" = $32.00. Assume the stock is in equilibrium and exhibits constant growth. 12.20% 9.50% 7.90% 8.70%
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