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The annual risk-free rate of return is 2% and the investor believes that the market will rise annually at 7%. If a stock has a
The annual risk-free rate of return is 2% and the investor believes that the market will rise annually at 7%. If a stock has a beta coefficient of 1.5 and its current dividend is $1, what should be the value of the stock if its earnings and dividends are growing annually at 4%?
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