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Suppose the risk-free rate of return is 3.5 percent and market risk premium is 7 percent. stock U, which has a beta coeffiecient equal to
Suppose the risk-free rate of return is 3.5 percent and market risk premium is 7 percent. stock U, which has a beta coeffiecient equal to 0.9, is currently sellin for $28 per share. the company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stock holders was $1.75 per share. is stock U correctly priced? Explain
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