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Stock Ms beta coefficient is b M = 0.9. The risk-free rate is 5 percent, and the expected return on an average stock is 12
Stock Ms beta coefficient is b M = 0.9. The risk-free rate is 5 percent, and the expected return on an average stock is 12 percent. The current price of Stock M, P 0, is $80; the next expected dividend, D 1, is $2.40; and the stocks expected constant growth rate is 8 percent. Which of the following is correct?
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