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Intro ABC Corp. has an ROE of 5% and reinvests 40% of its net income. ABC has just paid an annual dividend of $0.32.
Intro ABC Corp. has an ROE of 5% and reinvests 40% of its net income. ABC has just paid an annual dividend of $0.32. ABC stock has a beta of 1.3. The risk-free rate is 2% and the expected return on the market portfolio is 10%. Part 1 What is the appropriate discount rate? 3+ decimals Submit Part 2 What is the expected growth rate of dividends? 4+ decimals Submit B Attempt 1/10 for 10 pts. Attempt 1/10 for 10 pts. Part 3 What is the intrinsic value of the stock? 2+ decimals BAttempt 1/10 for 10 pts. Submit
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