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or questions 13 assume the risk-free interest rate is 3% and the expected market return is 9%. 1. What is the value of a stock

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or questions 13 assume the risk-free interest rate is 3\% and the expected market return is 9%. 1. What is the value of a stock with a beta of 1.2 that you expect to pay a $1.4 dividend one year from now, $1.7 in two years, and $2.8 in three years at which time you will sell the stock for $64. Discount rate = Stock price = WORK: 2. What is the value of a stock with a beta of 8 that just paid a $3 dividend that you expect to grow at 4% annually if you plan to hold it forever? Discount rate = Stock price = WORK: 3. What is the value of a stock with a beta of 1.3 that just paid a $3 dividend that you expect to grow at 4% annually if you plan to hold it forever? Discount rate = Stock price = WORK

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