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Risk Metrics Company is expected to pay a dividend of $2.80 in the coming year. Dividends are expected to grow at a rate of 6%
Risk Metrics Company is expected to pay a dividend of $2.80 in the coming year. Dividends are expected to grow at a rate of 6% per year. The risk-free rate of return is 2.5%, and the expected return on the market portfolio is 15%. The stock is trading in the market today at a price of $50.00. What is the market-capitalization rate for Risk Metrics?
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