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Stock A has a systematic risk of A =0.75 The risk-free rate is R F =2% and the return on the market portfolio is R
Stock A has a systematic risk of A=0.75 The risk-free rate is RF=2% and the return on the market portfolio is RM=12% The last dividend paid was D0=$2.00. The growth rate of dividends in the first period is g1=5%, and from the second period on is g2+=0%.
The required rate of return for A is : ?
The price at time 1, P1 is ?
The price at time 0, P0 is: ?
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