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LG 4,6 7-22 Integrative: Risk and valuation Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.

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LG 4,6 7-22 Integrative: Risk and valuation Given the following information for the stock of Foster Company, calculate the risk premium on its common stock. $50.00 Current price per share of common Expected dividend per share next year Constant annual dividend growth rate $ 3.00 6.5% Risk-free rate of return 4.5%

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