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The Aldridge Co . is expected to grow 5 % into the indefinite future. Its latest dividend ( D 0 ! ) was $ .

The Aldridge Co. is expected to grow 5% into the indefinite future. Its latest dividend (D0!) was $.80.(This is chapter 7 stuff!) Treasury bills earn 3.2% and the market yields 12.8%. What price should the stock trade for if Aldridge's beta is .85?(First use the CAPM to calculate r.) $13.21
If the stock is trading for $20, what is the expected return? ,9.2%
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