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Shares of ABC Inc. are expected to pay annual dividends of $2.00 each year. If the beta of the stock is 1.25, and the stock

Shares of ABC Inc. are expected to pay annual dividends of $2.00 each year. If the beta of the stock is 1.25, and the stock is currently trading at $25.66, comment on the stock price assuming the risk free rate is 4% and expected return of the market is 9%.

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