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Please use the formulas to show all the works SAR company's ordinary shares are expected to pay $ 2.8 per share in dividends in 4
Please use the formulas to show all the works
SAR company's ordinary shares are expected to pay $ 2.8 per share in dividends in 4 years and after which the dividends are expected to grow at 2% annually forever. Company ABC's shares have a beta of 1.7. The long-term return of ASX200 is 7.4% and the return of T-bonds is 3.3%. a.What is the expected return of SAR's shares according to the CAPM? b. What is the implied price per share
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