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Stock A has a systematic risk of 0.75. The risk-free rate is 2% and the return on the market portfolio is 12%. The last
Stock A has a systematic risk of 0.75. The risk-free rate is 2% and the return on the market portfolio is 12%. The last dividend paid was D_0=$2. The growth rate of dividends in the first period is 5%, and from the second period on is 0%. The price at time 0, P_0 is a. $22.11 b. $21.05 Oc. $16.67 Od. $21.00 e. $23.33
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