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QUESTION 26 A company is expected to pay a dividend of $1 5 per share one year form now and $1.82 in two years. You
QUESTION 26 A company is expected to pay a dividend of $1 5 per share one year form now and $1.82 in two years. You estimate the risk-free rate to be 4.9% per year and the expected market risk premium to be 5 9% per year Analysts expect the price of the stock to be $50 per share in one year. The beta of the stock is 1.2, and the current price to earnings ratio of the stock is 18. What would be an appropriate estimate of the stock price to be today? Answer to the nearest penny, ie. 55.55 but do not use a $ sign)
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