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KLN stock has a beta of 1.40. The expected annual dividend per share for the coming year is $4.30. The dividend is expected to grow

KLN stock has a beta of 1.40. The expected annual dividend per share for the coming year is $4.30. The dividend is expected to grow indefinitely at an annual rate of 5.70%. The market risk premium is 10.10%. If the risk-free rate is 2.60%, then what should be the price of KLN stock?

a.

$78.79

b.

$65.66

c.

$38.95

d.

$58.11

e.

$30.67

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