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Suppose that Steady State Electronics wins a major contract for its revolutionary computer chip. The very profitable contract will enable it to increase the growth

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Suppose that Steady State Electronics wins a major contract for its revolutionary computer chip. The very profitable contract will enable it to increase the growth rate of dividends to 6%. The company has just paid its annual dividend of $3 per share. The beta of Steady State Electronics is 1.0, the risk-free rate is 6%, and the market risk premium is 8%. What is your evaluation of its stock

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