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Great Wall Manufacturing has a beta of 1.75. The risk-free rate of return is currently 4 percent and the required rate return on a market
Great Wall Manufacturing has a beta of 1.75. The risk-free rate of return is currently 4 percent and the required rate return on a market portfolio is 20 percent. The company plans to pay a dividend of $3 per share in the coming year and anticipates that its future dividends will increase at an annual rate of 5% per year thereafter. Use this information to determine the current fair price of the companys stock.
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