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Hi! Would anyone be able to help with figuring out the solution to this problem? Please display formulas used. Assume the risk free rate is
Hi! Would anyone be able to help with figuring out the solution to this problem? Please display formulas used. Assume the risk free rate is 6 percent and the market risk premium is 6 percent. the stock of physician care network has a beta of 1.5. the last dividend paid by pcn was $2 per share. a. what would pcn's stock value be if the dividend was expected to grow at a constant: -5 percent 0 percent? 5 percent? 10 percent? b. what would be the stock value if the growth rate is 10 percent, but pcn's beta falls to: 1.0? 0.5
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