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The ABC stock is currently selling for $55 a share. The stock is expected to pay a $4 dividend at the end of the year.

The ABC stock is currently selling for $55 a share. The stock is expected to pay a $4 dividend at the end of the year. The stocks dividend is expected to grow at a constant rate of 4 percent a year forever. The risk-free rate is 5 percent and the market risk premium is 7 percent. What is the stocks beta?

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