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Question Given the following information for the stock of Foster Company, calculate the risk premium on its common stock. Current price per share of common

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Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.

Current price per share of common $50.00

Expected Dividend per share next year $3.00

Constant annual dividend growth rate 6.5%

Risk-free rate of return 4.5%

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