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Please help Question#1 The stock of company A has a beta of 1.5. The return of market portfolio is 9% and the risk-free rate is

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Question#1 The stock of company A has a beta of 1.5. The return of market portfolio is 9% and the risk-free rate is 1%. 1) According to the Capital Asset Pricing Model (CAPM), what is the expected return of this stock? Assuming that the stock has just paid a dividend of $0.2 per share and the dividend growth rate is constantly 5% per year. If you use the expected return implied by the CAPM (in question (1)) as the market capitalization rate, what should be the stock price today according to the constant growth model? 2) Based on question (2), if the stock's next year's earnings per share is expected to be $2. What is the present value of growth opportunity (PVGO)? 3)

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