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Suppose a stock is expected to pay a dividend of $0.95 at the end of the year and that the dividend is expected to grow
Suppose a stock is expected to pay a dividend of $0.95 at the end of the year and that the dividend is expected to grow at a rate of 3%. The company s current beta is 0.7, the current risk-free rate is 5% and the market risk premium is 7%. What is the intrinsic value of this stock?
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