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Suppose the riskefreen rate of ceturn is 2.5 percent and the markot nak premium is 6 percent. Stock U, which has a beta coefficient equal

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Suppose the riskefreen rate of ceturn is 2.5 percent and the markot nak premium is 6 percent. Stock U, which has a beta coefficient equal to 1.4 , is currently selling for $20 per share. The compary is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders inas $1.50 per share. Is $5tickU correctly priced? Explain. Do not round intermediate calculations. Found your answers to one decimal place. The required rate of return, that is W. is the expected rate of return, that is W. which means that

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